Canaccord Genuity recently reduced its price target for Mobileye N.V (NASDAQ:MBLY) to $24.00, down from the previous $30.00 mark, reflecting a more cautious perspective on the progression of Mobileye’s partnership with Volkswagen. The firm has retained its Buy rating on the shares, which currently trade near $10.51—close to the 52-week low at $10.04—indicating the stock might be undervalued based on InvestingPro Fair Value metrics.
The lowered target stems from what Canaccord describes as "a more disciplined projection of the Volkswagen ramp," implying that the anticipated growth related to Volkswagen’s integration of Mobileye technology is expected to be more measured than previously assumed. Despite this adjustment, Canaccord highlights that revising the estimates may "potentially de-risk" its outlook, maintaining that Mobileye remains an appealing opportunity, even if market developments progress more deliberately than initial predictions suggested.
This perspective is consistent with the broader analyst community. According to InvestingPro data, price targets on Mobileye maintain a bullish range spanning from $11 to $31.10, with consensus outlooks reflecting substantial upside despite the share price’s 34.7% decrease over the preceding six months.
The updated $24 target corresponds to approximately 18 times Canaccord’s forecasted adjusted earnings per share (EPS) of $1.32 in 2028, a downward revision from the earlier estimate of $1.66. Canaccord frames this valuation multiple as "mostly in line with comp group" multiples, where the mean hovers near 23 times and the median around 16 times across sectors such as semiconductors, mobility solutions, autonomous vehicles, Tier 1 automotive suppliers, and sustainability-focused industries.
Currently, Mobileye is not profitable, registering a negative price-to-earnings ratio of -22.56; however, analysts anticipate the company will achieve profitability by 2026, projecting an EPS of $0.35. The company’s financial position remains robust, with a cash balance exceeding debt and a current ratio of 6.1 signaling healthy liquidity.
Separately, Mobileye Global Inc.'s fourth-quarter 2025 earnings fell short of expectations. Reported EPS stood at $0.06 compared to the forecasted $0.24, while revenue reached $446 million, underperforming against the $726.82 million anticipated. Following these results, firms such as Mizuho and Oppenheimer have adjusted their price targets. Mizuho lowered its target from $12.00 to $11.00, keeping a Neutral rating due to prudent views on the Chinese market. Oppenheimer trimmed its target from $28.00 to $27.00 but maintained an Outperform rating, acknowledging tempered growth prospects and prevailing inventory conditions within the industry.
Mobileye’s guidance for fiscal 2026 projects revenues of approximately $1.94 billion, representing about a 3% year-over-year increase, which falls short of the 6% consensus growth estimates. Oppenheimer notes the company’s outlook signals modest unit growth combined with stable pricing, in addition to facing headwinds related to market mix.
These developments afford stakeholders a nuanced view of Mobileye’s current financial trajectory and strategic positioning, illustrating a company navigating industry challenges while laying groundwork for future profitability and expansion.