Deutsche Bank upgraded Mobileye N.V. (NASDAQ: MBLY) from Hold to Buy, raising its price target to $19.00 from $16.00. Shares climbed more than 3% intra-day Monday following the announcement.
The firm said it saw a favorable risk-reward setup heading into the company’s third-quarter earnings on December 3. Analysts expected Mobileye to surpass guidance and raise its full-year outlook, while investor expectations remained muted regarding new design wins or robotaxi developments.
Deutsche Bank said the base advanced driver-assistance systems (ADAS) business was now largely de-risked and that management could announce a potential partnership with Toyota before year-end, possibly involving a Surround ADAS or robotaxi collaboration.
The firm added that Intel’s improved balance sheet, bolstered by U.S. government funding and strategic investments, reduced the likelihood of further Mobileye share sales. Deutsche Bank maintained conservative long-term forecasts but said valuation multiples could re-rate higher based on future OEM wins.
