Balancing Cautious Near-Term Guidance With Underappreciated Long-Term Upside at Mobileye

Joshua Buchalter, an analyst from TD Cowen, maintained the Buy rating on Mobileye Global, Inc. Class A. The associated price target is $13.00.

Joshua Buchalter has given his Buy rating due to a combination of factors that balance Mobileye’s conservative near‑term outlook with attractive longer‑term potential. He views management’s cautious 2026 guidance—despite a recent earnings beat and upward revisions to auto demand forecasts—as deliberately prudent, noting the company’s history of starting conservatively and later raising expectations. The forecast builds in downside from Chinese OEMs and supply-chain risks, yet still implies healthy EyeQ shipment volumes, which he sees as a solid baseline rather than a peak. At roughly 3x his 2027 enterprise value-to-sales estimate, he believes the stock’s valuation already discounts much of this caution and offers compelling upside.

At the same time, Buchalter emphasizes Mobileye’s growing pipeline in higher-value advanced driver-assistance and autonomy programs, even though actual revenue conversion remains slower than hoped. He points to firming commitments in Surround ADAS and robotaxi initiatives, including recent wins with additional OEMs and planned VW robotaxi deployments, as setting the stage for a meaningful ramp from 2027 onward. While delays at Porsche and Audi push out the start of high-margin SuperVision and Chauffeur programs, he still views these as intact and strategically important. He also highlights the Mentee Robotics acquisition as a longer-term “physical AI” option that could add another growth vector later in the decade, reinforcing his view that Mobileye offers an appealing combination of defensive core business and underappreciated strategic upside.

Buchalter covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Broadcom, and Intel. According to TipRanks, Buchalter has an average return of 19.2% and a 63.94% success rate on recommended stocks.

In another report released yesterday, Needham also maintained a Buy rating on the stock with a $16.00 price target.