Mobileye's (MBLY) Sector Weight Rating Maintained at Pacific Crest

Pacific Crest maintained a Sector Weight rating on Mobileye N.V (NYSE: MBLY). Despite increased optimism on ADAS and the NTSB's recent recommended that forward collision warning systems become standard in U.S. cars, analyst Brad Erickson remains on the sidelines due to valuation.

"We expect the near-term narrative around ADAS/active safety in cars to continue improving, which could also include OEMs announcing their intent to go standard like Nissan and Toyota already have. While this could push MBLY higher in the near term, we remain Sector Weight given valuation, likely slower realization of anticipated mandates and the associated pricing headwinds this could create," said Erickson.

"We fully expect the NTSB's recommendation to become a reality over the much longer term, but if we learned anything from the five years of delays before the rear backup camera mandate could be passed (called KTSA, Kids Transportation Safety Act), it's that auto makers don't like to be told they have to add cost to their vehicles before they've had a chance to find ways to support those costs. In KTSA's case, the incremental cost was roughly $200. We estimate FCS could run nearly 2x that," added the analyst.

For an analyst ratings summary and ratings history on Mobileye N.V click here. For more ratings news on Mobileye N.V click here.

Shares of Mobileye N.V closed at $51.56 yesterday.

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