5) Mobileye Global Inc. (NASDAQ:MBLY)
Average Upside Potential: 57.12%
% Fall on a YTD Basis: ~65%
Number of Hedge Fund Holdings: 28
Mobileye Global Inc. (NASDAQ:MBLY) is engaged in developing and deploying advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide.
Several factors have impacted the stock price of Mobileye Global Inc. (NASDAQ:MBLY), with investors’ confidence getting hampered due to the weaker-than-expected outlook for H2 2024 and 3 consecutive reductions in the financial guidance. Investors have become cautious, as the broader technology sector continues to face headwinds, resulting in the revaluation of growth prospects amidst heightened volatility and economic uncertainty. There are concerns regarding Mobileye Global Inc. (NASDAQ:MBLY)’s revenue and profit forecasts as a result of volatile demand for the company’s driver-assistance chips in China. Also, volatility in China impacted the SuperVision projections for 2024. The company has also highlighted the lower adoption rates for lower-level ADAS, attributable to factors like inventory residuals.
That being said, Wall Street analysts and market experts continue to remain optimistic about the company’s future growth prospects. They believe that the growth momentum in EyeQ and SuperVision volumes should continue and that the collaboration with Zeekr on next-generation vehicles should help Mobileye Global Inc. (NASDAQ:MBLY) in its growth journey. Despite the near-term volume challenges in China, the company is optimistic regarding the long-term prospects in the region. Also, the expected recovery of market share with the help of localization efforts and lower-cost solutions should aid Mobileye Global Inc. (NASDAQ:MBLY).
The company continues to prepare for major design wins in SuperVision and Chauffeur by year-end 2024 and targets to be a market leader in these areas. The ramp-up for entry-level ADAS offerings should start in H2 2026 and early 2027.
Analysts at Evercore ISI reiterated an “Outperform” rating, giving a price target of $35.00 on the shares of Mobileye Global Inc. (NASDAQ:MBLY) on 26th August. Out of 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 28 hedge funds reported owning stakes in the company.
Baron Funds, an investment management company, released its first quarter 2024 investor letter. Here is what the fund said:
“We also modestly increased our positions in The Trade Desk and Mobileye Global Inc. (NASDAQ:MBLY). The assisted and autonomous driving solution provider, Mobileye, experienced significant stock price volatility as a result of reporting weak quarterly results on the back of an inventory build-up, which led the company to reduce near-term shipments materially, resetting expectations for 2024. Despite the near-term cyclical correction, we don’t believe the issues are structural, and we are more focused on the continued adoption of Mobileye’s advanced programs such as Supervision, which would increasingly become the key growth driver for the business.”
