Why Mobileye (MBLY) Is Up 6.9% After Deutsche Bank Upgrade and Toyota Partnership Speculation

• In the past week, Deutsche Bank upgraded Mobileye Global’s rating and expressed optimism for potential new partnership announcements, possibly with Toyota Motor. The upgrade reflects anticipation that upcoming collaborations or design wins could shift market sentiment if realized.
• To understand the implications, we'll explore how renewed partnership speculation may influence Mobileye’s outlook and analyst expectations for growth.

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Mobileye Global Investment Narrative Recap

To be a Mobileye Global shareholder, you need to believe in the broad adoption of advanced driver-assistance and autonomous technologies by global automakers and the company’s ability to secure major design wins. The recent Deutsche Bank upgrade, driven by hopes for new partnerships like one with Toyota, could become a short-term catalyst if it leads to near-term contract announcements, though the biggest risk remains uncertainty in global light vehicle production and trade friction, which continues to threaten volume growth.

Of the recent developments, the May announcement that a global automaker selected Mobileye’s Imaging Radar for launch in 2028 is most relevant. Such client wins reinforce hopes for further partnerships but the immediate impact on short-term earnings and sentiment may hinge on whether anticipated collaborations, like those mentioned by Deutsche Bank, materialize soon.

Yet, while enthusiasm about partnership speculation is rising, the potential for reduced auto volumes from tariffs remains something investors should not overlook, especially as…

Read the full narrative on Mobileye Global (it's free!)

Mobileye Global's outlook anticipates $3.0 billion in revenue and $111.5 million in earnings by 2028. Achieving this would require annual revenue growth of 15.6% and a $3.1 billion earnings increase from the current earnings of -$3.0 billion.

Uncover how Mobileye Global's forecasts yield a $19.67 fair value, a 30% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community provided four fair value estimates ranging from US$12 to US$23.14 per share. With partnership announcements in focus, views on future demand and risk from auto tariffs could drive even wider differences in expectations.

Explore 4 other fair value estimates on Mobileye Global - why the stock might be worth as much as 53% more than the current price!

Build Your Own Mobileye Global Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Mobileye Global research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Mobileye Global research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Mobileye Global's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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