Bank of America Securities analyst Federico Merendi reiterated a Hold rating on Mobileye Global, Inc. Class A today and set a price target of $18.00.
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Federico Merendi has given his Hold rating due to a combination of factors. Mobileye Global, Inc.’s preliminary second-quarter results exceeded expectations, with both revenue and operating income surpassing estimates. This growth, partly attributed to inventory pre-buying ahead of potential tariffs, suggests a positive short-term outlook. However, despite the strong results, there is caution regarding the sustainability of this performance, particularly given the conservative guidance for the latter half of 2025.
Additionally, the company’s recent repurchase of $100 million in shares from Intel and the subsequent share conversion indicate strategic financial maneuvers but do not necessarily imply a long-term buyback program. The adjustment of estimates for improved light vehicle volumes and a lowered price objective from $19 to $18, based on a revised valuation methodology, further supports the Hold rating. These factors collectively suggest a balanced view of potential risks and opportunities, justifying the neutral stance.
In another report released today, UBS also maintained a Hold rating on the stock with a $18.00 price target.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MBLY in relation to earlier this year.