Tesla Says They Are Sticking With Mobileye NV (MBLY)

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Shares of Mobileye NV (NYSE:MBLY) are rebounding this morning after a selloff yesterday following rumors that Tesla would be dropping the comany’s technology from their autopilot systems. Tesla this morning has squashed these rumors, saying that they will continue their use of Mobileye’s driver-assistance technology.

At 11:30 a.m ET yesterday shares of Mobileye NV (NYSE:MBLY) fell off a cliff from $43.52 to $40.33 in a matter of a few minutes following a Bloomberg story pertaining to Tesla dropping their technology. Today the stock has recovered quite a bit but is still considerably lower than it was prior to the rumor being posted. It will be inetresting to see how this stock trades throughout the remainder of the day. The stock is currently trading higher by 4.74% or $1.89 following the positive news, hitting $41.73 per share at the time of us publishing this article. About 106,532 shares traded hands. MBLY has declined 16.83% since May 14, 2015 and is downtrending. It has underperformed the S&P500 by 13.15%.

From a total of 8 analysts covering Mobileye (NYSE:MBLY) stock, 6 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $80 while the lowest target price is $50. The mean of all analyst targets is $70.67 which is 69.35% above today’s ($41.73) stock price. Mobileye was the topic of 10 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. FBR Capital initiated shares on December 10 with a “Mkt Perform” rating. Barclays Capital upgraded MBLY stock in a recent report from October 9 to a “Neutral” rating.

Mobileye NV designs and develops software and related technologies for camera advanced driver assistance systems . The company has a market cap of $9.05 billion. The Company’s software algorithms and EyeQ system on a chip (SOC) perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris and other obstacles. It has 190.89 P/E ratio. The Company’s products are also able to detect roadway markings such as lanes, road boundaries, barriers and similar items, as well as to identify and read traffic signs and traffic lights.

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