Wells Fargo analysts initiated Mobileye (NASDAQ:MBLY) at Overweight with a $50 price target in a note to clients Thursday.
They labeled Mobileye a "long-term platform play," adding that they are positive about the company's strategy and positioning and see upside potential.
"MBLY's position as a pure-play beneficiary of semi growth via expanding ADAS features/functionality is well-known. Our thesis is underpinned by the belief that MBLY is at the early stages of being appreciated as a platform enabler for auto industries' drive toward fully autonomous vehicles over the next 5-10+ yrs," wrote analysts.
"We model MBLY's SuperVision rev. to grow to $3.2B over the next 5-yrs, but see an upside scenario implying >$7B."
Analysts pointed to MBLY's SuperVision expansion as being key. "We're positive on MBLY's strategy that SuperVision adoption/expansion will serve as the foundation for its consumer AV strategy - e., Chauffeur, an eyes-off / hands-off offering w/ initial volumes in '26," they added.