Mobileye price target lowered to $16 from $34 at Loop Capital

Loop Capital lowered the firm’s price target on Mobileye to $16 from $34 and keeps a Buy rating on the shares after its Q2 results and FY24 guidance update. While some softness in the outlook was “anticipated”, the magnitude of the guidance cut was not, with the update driven by softer macro in China, China auto OEM share gains by non-Mobileye vendors, and the delay of a non-China ADAS launch, the analyst tells investors in a research note. Loop adds however that despite the near-term macro dynamics, Mobileye has a strong footing in China and has partnered with Zeekr to expand its Chinese localization. The firm further notes that the collaboration should lead to Zeekr’s adoption of the EyeQ6-based version of SuperVision, and a path to a robotaxi collaboration.