(CercleFinance.com) – Canaccord Genuity announced on Friday that it had lowered its price target on Mobileye, from $45 to $34, while renewing its buy recommendation on the stock.
For the record, the autonomous driving technology specialist yesterday issued a warning on its results for 2024 due to the high inventory levels of its customers.
‘Perhaps we should have seen it coming,’ analysts at the Canadian bank react today.
‘After years of global shortages, particularly in the automotive equipment sector, Mobileye was destined to suffer a ‘bullwhip effect’ following the deterioration of demand in the sector in 2023′, they emphasize.
According to Mobileye, stocks for its ‘EyeQ’ system on a chip (SoC), which notably equips the front cameras of vehicles, are currently in excess of six to seven million units among its customers.
‘This is not nothing,’ notes Canaccord, who believes that this warning taints the credibility of the group’s management team to provide accurate forecasts, which promises a long recovery for the title.
All is not gloomy, however, concludes the analyst, who notes that the SuperVision product range, very important for the company, does not seem affected, while the CES show which will be held next week could give rise to good surprises, he adds.
For Canaccord, the stock’s correction could therefore represent an interesting entry point for investors with a long-term perspective.
Copyright © 2024 CercleFinance.com. All rights reserved.
The information and analyzes distributed by Cercle Finance only constitute a decision-making aid for investors. Cercle Finance cannot be held responsible directly or indirectly following the use of information and analyzes by readers. It is recommended that any uninformed person consult a professional advisor before making any investment. This indicative information does not in any way constitute an inducement to sell or a solicitation to buy.
Did you like this article ? Share it with your friends using the buttons below.
This is a Smartvoice article: see legal notices