Citi's analyst Michael Ward emphasized that Mobileye has been a pioneer in advanced driver assistance systems (ADAS) for 25 years, with its EyeQ system-on-chip technology already installed in over 230 million vehicles worldwide.
The firm believes that as the adoption of advanced vehicle systems like lidar and 360-degree vision increases, Mobileye's technology will be integrated into even more vehicles. The company is also planning to introduce more sophisticated driver assist systems in collaboration with global vehicle manufacturers by 2028.
Despite Citi's optimistic outlook, the consensus among analysts is mixed, with only 10 out of 25 recommending a buy or strong buy, while 14 suggest holding the stock. Mobileye's shares have declined by 29% year to date, significantly lagging behind the S&P 500's 13% increase during the same period