Raymond James recalibrated its price target for Mobileye N.V. (NASDAQ:MBLY) to $16.00, down from its previous $19.00 estimate, while retaining an Outperform rating on the shares. This revised target signifies substantial appreciation potential from Mobileye’s current trading level of approximately $9.80, hovering close to its 52-week trough of $10.04, as reported by InvestingPro data.
In its fourth-quarter 2025 report, the company disclosed revenue totaling $446 million, reflecting a 9% decrease compared to the same period last year. Despite this decline, the results outpaced expectations set by both Raymond James and the broader market. This performance was underpinned by shipments of 8.3 million systems and an average selling price (ASP) of $50.80, bolstered by favorable sales mix contributions from its SuperVision product line.
Mobileye reaffirmed its fiscal year 2026 guidance, categorizing it as a transition year. However, Raymond James notes potential for positive developments in the latter part of 2026. The company continues to uphold its ambitious eight-year revenue potential estimate exceeding $24 billion. Additional disclosures included progress on securing a second Top-10 Surround ADAS customer, representing an aggregate of 19 million units from its initial two clients.
In strategic advancements, Mobileye expanded its roadmap with Volkswagen for robotaxi deployment, aiming for a driverless milestone by 2026 and introduction across multiple cities in 2027. The firm also emphasized its acquisition of Mentee Robotics as a long-term investment in Physical AI, anticipating limited disruption to current operations in the near term.
Despite the challenges reflected in a nearly 35% decline in stock value over the past six months, InvestingPro analysis suggests that Mobileye might be undervalued based on its fundamentals. Subscribers have access to an in-depth Pro Research Report that delves into key factors influencing the company’s trajectory within the autonomous driving sector.
Raymond James highlighted Mobileye’s pronounced earnings leverage due to incremental revenue gains, noting research and development expenses constituting roughly half of total sales. This cost structure factors into sustaining the Outperform rating notwithstanding the lower target price. Currently, Mobileye is not profitable, with a trailing twelve months earnings per share (EPS) of -$0.48. Analysts monitored by InvestingPro forecast a turnaround with an expected positive EPS of $0.27 in the current fiscal year. Financially, Mobileye maintains a robust balance sheet, featuring a cash position exceeding its debt and a current ratio of 6.1.
Other updates include Mobileye Global Inc.'s Q4 2025 earnings report, which did not meet market forecasts. Reported EPS stood at $0.06, substantially lower than the anticipated $0.24, while revenue at $446 million was significantly beneath the expected $726.82 million. Reflecting these outcomes, several analysts adjusted their price targets accordingly. Canaccord Genuity decreased its target to $24.00, attributing caution to Mobileye’s partnership outlook with Volkswagen. Mizuho lowered its target to $11.00 and maintained a Neutral stance, reflecting caution regarding the Chinese market opportunity. Oppenheimer revised its target down to $27.00 but upheld an Outperform rating, highlighting modest growth expectations paired with lean inventory levels. These differing analyst perspectives underscore a period of strategic reassessment for Mobileye amid dynamic market conditions.