JPMorgan downgrades Mobileye on uncertainty in auto market

JPMorgan analyst Samik Chatterjee downgraded Mobileye to Neutral from Overweight with a price target of $24, down from $38. The analyst says the uncertainty in the autos market has only increased in recent months with a deteriorating volume outlook for electric vehicles being compounded by the “relatively lackluster” sales trends for internal combustion engines and hybrids. The near-term demand outlook for Mobileye’s advanced driver-assistance systems business could be at risk following a “slew of negative datapoints” from auto exposed semiconductor companies, the analyst tells investors in a research note. Longer term, JPMorgan expects a structural headwind and revenue total addressable market reduction for Mobileye’s SuperVision, which it says is largely designed in with Chinese vehicles currently as the import tariffs will drive a more subdued growth outlook for vehicle models.