Mobileye (MBLY) stock pushed significantly higher on April 23 after the autonomous driving tech specialist posted a strong Q1 and raised its guidance for the full year.
As investors cheered the company’s 27% increase in revenue to $558 million on $0.12 of earnings per share (EPS), MBLY broke through its 50-day MA, signaling shifting momentum in favor of the bulls.
Despite the recent rally, however, Mobileye stock remains down nearly 30% versus its YTD high.
Should You Invest in Mobileye Stock Today?
Mobileye management attributed Q1 strength to three key factors:
- Higher ADAS fitment rates at core Western customers.
- Robust Chinese OEM export volumes.
- Customers are rebuilding safety stock inventories to normal levels.
MBLY shares remain attractive also because the company made a $250 million buyback announcement, signaling management’s commitment to offsetting dilution from stock-based compensation.
Its recent $900 million acquisition of Mentee Robotics, which accelerates its push into full-stack, end-to-end AV systems, also warrants owning Mobileye for the longer term.
Note that MBLY’s relative strength index (RSI) sits at 67 currently, indicating further upside room before the stock hits overbought territory.
What Else Makes MBLY Shares Worth Owning
The broader bull thesis for Mobileye shares is rooted in the company’s dominance in AV systems.
In its earnings release, MBLY maintained that its recent partnership with Volkswagen (VWAGY) positions it as one of the only — if not sole — robotaxi operators in Europe.
In Q1, the Nasdaq-listed firm secured a significant design win with Indian automaker Mahindra, which plans to use its hands-free, eye-on tech in at least six new models.
This adds a third Surround ADAS customer. Meanwhile, progress on its SuperVision system for Porsche makes up for another reason to own Mobileye.
At quarter-end, MBLY had $1.2 billion in cash, indicating ample firepower to fund AV expansion without balance‑sheet strain.
Mobileye Remains Buy-Rated Among Wall Street Firms
Wall Street analysts also recommend buying MBLY stock into post-earnings strength.
According to Barchart, the consensus rating on Mobileye Global remains at a “Moderate Buy,” with the mean price target of nearly $14 suggesting potential upside of another 57% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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