Analyst Downgrades Mobileye Due to OEM Win Uncertainty

In the United States, Mobileye Global Inc experienced a decline in its stock value, losing approximately 68% year to date. This downturn is attributed to uncertainties surrounding the company's original equipment manufacturer (OEM) wins, particularly in premium products like SuperVision. RBC Capital Markets analyst Tom Narayan downgraded Mobileye's rating from Outperform to Sector Perform, reducing the price target from $24 to $11. Narayan noted that while Mobileye is in discussions with 14 OEMs, clarity regarding these partnerships may not emerge for another six to twelve months. Recent guidance cuts from major automotive manufacturers such as BMW, Mercedes, Volkswagen, and Stellantis have raised concerns about the likelihood of near-term win announcements for Mobileye. These companies are focused on managing high dealer inventories without significantly lowering prices, leading to production cuts that could hinder Mobileye's cash flow in the short term. Additionally, there are investor worries regarding Mobileye's exposure to the Chinese market, particularly with partnerships involving Zeekr and FAW, which may not be as strong as previously thought. As a result of these factors, Mobileye's shares saw a slight increase of 1.47% to $13.20 on the day of the publication. However, the overall outlook remains cautious due to the prevailing uncertainties in the automotive sector and the company's performance in the competitive landscape. The situation highlights the challenges faced by Mobileye in securing OEM partnerships and navigating market dynamics, particularly in light of recent production adjustments by key industry players.