Mobileye (NASDAQ:MBLY) shares surged more than 14% after it was announced that Lyft Inc (NASDAQ:LYFT) will launch Mobileye-powered robotaxis in Dallas as soon as 2026.
Shares of Mobileye, a leading provider of advanced driver assistance systems (ADAS) and autonomous vehicle (AV) technology, added 14.1% at about $18 late morning, while Lyft stock was up 3.1%.
Also boosting the company’s stock was an upgrade from Bank of America analysts, who boosted their rating on the stock to ‘Neutral’ from ‘Underperform’ and upped their price target to $19 from $12.
“We adjust our earnings forecast in consideration of Q4 results, the company's 2025 outlook and longer-term commentary, as well as our broader view on the AV market,” they wrote in a note to clients.
“We expect ADAS products will penetrate a growing portion of the auto market, but anticipate the deployment of more advanced AV products will drive a gradual share shift.”
They noted that while the company’s 2025 guidance was below estimates it limits downside risk, in their view.
“Our discussions with investors also suggest sentiment is bottoming, and there are potential catalysts in 2025 from contract wins with several OEMs in the later stages of contract negotiations for SuperVision and Surround ADAS,” they wrote.
“On the other hand, it could take until 2027 for earnings growth to inflect more positively and the AV tech market is increasingly competitive. As such, we believe a 'Neutral' rating is appropriate.”