Chip manufacturer Intel Corporation (INTC) said its subsidiary, Mobileye, a developer of self-driving cars and advanced driver assistance systems (ADAS), has started testing self-driving cars in New York City. Shares closed up 1.1% at $55.24 on July 21.
Mobileye chose New York city for testing as the city presents unique challenges, including aggressive drivers, jaywalking, double parking, famously bright city lights at night, and construction sites. Hence, successful testing would mean that its self-driving car is capable of handling the most difficult driving environments. (See Intel stock charts on TipRanks)
Mobileye is also testing its self-driving cars in Detroit, Munich, and Israel and expects to start testing in Tokyo, Shanghai, and Paris soon.
Currently, Mobileye is the only autonomous vehicle company to have secured a permit to test drive in New York City. The company has shared an unedited video of one of its test drives on its website.
Yesterday, Susquehanna analyst Christopher Rolland reiterated a Hold rating on the stock with a price target of $60, implying 8.6% upside potential.
Rolland believes that Intel has set the bar too low for Q1 earnings expectations and therefore thinks the results will be positive.
Intel is scheduled to report second-quarter results on July 22, followed by an event to update its process and packaging roadmaps. Rolland cautions investors about increased volatility during these two events.
Overall, the stock has a Hold consensus rating based on 9 Buys, 9 Holds, and 7 Sells. The average Intel price target of $62.35 implies 12.9% upside potential to current levels. Shares have gained 11.2% year to date.
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