RBC Capital downgrades Mobileye to Underperform and cuts price target to $5
RBC Capital analyst Tom Narayan lowered Mobileye’s rating to Underperform and reduced the price target from $7.00 to $5.00, citing risks from a shift to centralized compute and heavy reliance on Volkswagen. The downgrade prompted the stock to slip about 4% in pre‑market trading, reaching $7.00, near its 52‑week low. RBC also noted that analysts expect Mobileye to become profitable this year with an EPS forecast of $0.48.
Why it matters
The downgrade and lower price target signal heightened growth concerns, which may pressure the share price further and affect investors’ valuation models. RBC’s view also highlights execution risk tied to Volkswagen, a key customer.
Key facts
- 1RBC Capital downgraded Mobileye to Underperform from Sector Perform. investing.com
- 2RBC cut the price target to $5.00 from $7.00. investing.com
- 3Mobileye shares fell 4.1% pre‑market after the downgrade. investing.com
- 4The stock traded at $7.00 after the downgrade, near its 52‑week low of $6.47. investing.com
- 5RBC cited risk of ADAS displacement as OEM architectures shift toward centralized compute. investing.com
- 6RBC highlighted near‑total premium product dependence on Volkswagen Group. investing.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.