Citi Initiates Mobileye Coverage With Buy Rating, Sees 48% Upside as Autonomous Adoption Accelerates

Mobileye Global is positioned for significant gains as its technology sees broader integration into vehicles worldwide, according to Citi. The investment bank initiated coverage of the autonomous driving technology stock with a buy rating and set an $11 price target, implying roughly 48% upside from Thursday’s close.

“The global auto industry will continue to prioritize vehicle safety, with autonomous technology at the forefront of that progress over the next decade,” analyst Michael Ward wrote in a client note on Friday. “Mobileye has led the advanced driver assistance systems (ADAS) market for 25 years and has expanded into autonomous driving technologies.”

Mobileye’s EyeQ system-on-chip technology is installed in more than 230 million vehicles across 1,400 models globally, Ward noted. He added that rising adoption of advanced vehicle systems—including lidar and 360-degree vision—should expand the company’s reach. These systems support features such as steering assist, adaptive cruise control, and autonomous driving, Citi said.

Mobileye plans to introduce “more sophisticated systems with global vehicle manufacturers that include more advanced and higher-content driver assist systems” in 2028, Ward wrote.

Citi’s outlook diverges from Wall Street consensus. Of the 25 analysts covering Mobileye Global, 10 maintain a buy or strong buy rating, while 14 have a hold rating, according to LSEG data. Shares have declined 29% year to date, significantly underperforming the S&P 500, which is up 13% over the same period.

Source link