This application software company is also a “buy” at Citigroup on its potential from faster automatic emergency braking adoption. The analyst’s price target is a very attractive $62. The shares are trading down right now, as the lockup period is expiring, creating a discounted opportunity.
Mobileye N.V. (MBLY)
from New Technology Superstars
Shares of the Israeli-based Mobileye N.V. (MBLY), software developer of camera-aided driver assistance systems are down about 5% so far in the New Year. There were several key trends at the Consumer Electronics Show, including cheaper and smarter fitness bands and smartwatches, as well as most television manufacturers introducing their new 4k TV’s. But the biggest headlines came from the plethora of “smarter” cars that were showcased by the likes of General Motors, Volkswagen, Mercedes-Benz, Google and others.
Although Mercedes introduced its F015 fully autonomous vehicle that completely self-drives, most analysts note that we are about 15 years away from these concept cars becoming cheap enough for them to be a reality for the general public. Mobileye, however, is a leader in semi-autonomous systems, which allow vehicles to perform 90% of driving duties without human intervention. They require drivers to deal with the most perilous and unpredictable situations, allowing them to take control of the wheel at any point.
I like this story a lot but investors have been repelled by the valuation. Keep holding but reset target to $52.05 and set a protective sell-stop at $34.95.
Jon Markman, New Technology Superstars, published by Money and Markets, a Division of Weiss Research, Inc., www.moneyandmarkets.com/services/trading-services/new-technology-superstars, issues@e.moneyandmarkets.com; 1-800-291-8545, January 23, 2015