Piper Sandler raises Mobileye stock target, maintains Neutral rating

On Friday, Piper Sandler adjusted its price target for Mobileye N.V (NASDAQ:MBLY) shares, increasing it to $32.00, which is a slight rise from the previous $31.00 target. The firm continues to hold a Neutral stance on the stock. The adjustment follows Mobileye's first-quarter earnings, which met expectations and did not bring any surprises. This was partly due to the fact that management had already provided an intra-quarter guidance update, leaving no room for changes during the earnings call.

Mobileye's stock experienced minimal fluctuations following the earnings release, ending the trading day with a slight drop of 0.7%. The analyst from Piper Sandler noted that the stock had previously seen a sharp decline in January due to unexpected de-stocking, but the latest earnings call was considered relatively straightforward by market standards.

The ongoing Neutral rating reflects a cautious outlook on Mobileye's current business focus. The analyst pointed out that Mobileye's growth is primarily driven by the SuperVision product, which has significant exposure to a limited number of Chinese manufacturers. The firm suggests that a broader diversification of profit and loss exposure could make the stock more attractive.

The new price target of $32.00 takes into account a marginally higher cash balance and a slightly reduced share count for Mobileye. Piper Sandler's maintained Neutral rating indicates that while there may be positive aspects to Mobileye's financials, there are also factors that warrant a watchful approach to the stock at this time.

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