Mobileye Global Faces Structural Headwinds, RBC Says in Downgrade

MT Newswires Live10-21

Mobileye Global (MBLY) faces structural concerns related to its core advanced driver-assistance systems business and its concentrated Volkswagen-dependent premium product portfolio, RBC Capital Markets said Tuesday in a report.

Mobileye's base ADAS business faces displacement risks, and its ADAS electronic control unit might be eliminated entirely as automotive architectures migrate toward centralized compute platform, the report said.

Mobileye's premium products, SuperVision and Chauffeur, derive nearly all of their commercial traction from Volkswagen, and 75% of the company's future annualized revenue from Volkswagen may be at risk, the report said.

RBC downgraded Mobileye stock to underperform from sector perform and cut its price target to $5 from $7.

Price: 7.01, Change: -0.30, Percent Change: -4.04

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