Mobileye: We Reiterate Our High Regards For The Company’s Business Model And Future Prospects, Says William Blair


In a research report issued today, William Blair analyst Jason Ader, maintained an Outperform rating on Mobileye N.V. Amsterdam (NYSE:MBLY), following the company’s impressive quarterly results in its first public quarter. The company posted revenue of $33.7 million and a non-GAAP EPS of $0.05. No price target was provided.

Ader wrote, “Mobileye’s robust growth trend comes with high visibility and best-in-class profitability. Revenue in the quarter benefited from several new program launches, demand on existing programs, and higher ASPs from new advanced applications. Profitability was robust, as expected, with net income margin and free cash flow margin of 33% and 59%, respectively, despite higher-than-expected taxes. Overall, the quarter was strong and we reiterate our high regard for the company’s business model and future prospects.” 

Ader continued, “We believe Mobileye revenue could grow to well over $1 billion by 2020. We get to our forecast revenue figure for the year 2020 if a few factors line up: 1) 50% of vehicles have a camera-based ADAS system, 2) Mobileye has 50% share of those systems, and 3) Mobileye maintains an ASP of about $50. Specifically, about 100 million global car sales in 2020 times 50% ADAS penetration times 50% share for Mobileye times $50 ASP leads to $1.25 billion in Mobileye revenue. We believe these assumptions are all reasonable and likely conservative.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Ader has a total average return of 7% and a 60% success rate. Ader has a 13.3% average return when recommending MBLY, and is ranked #906 out of 3270 analysts.

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