Oppenheimer has maintained its Outperform recommendation on Mobileye N.V. (NASDAQ: MBLY) in the wake of the company's new customer agreement with Mahindra. The broker sees the deal as confirmation of Mobileye's technology platform and its ability to support original equipment manufacturers' (OEMs) technology roadmaps, even as the company does not expect significant revenue from the program until 2028.
At present the stock is trading at $9.66, and is identified as undervalued by InvestingPro valuation models. The share price has, however, declined by over 33% in the past six months.
Under the new arrangement, Mobileye will act as a Tier 1 supplier to Mahindra, delivering both its Super Vision and Surround advanced driver assistance systems (ADAS). Oppenheimer interprets the contract as an endorsement of Mobileye's technology architecture and a signal that OEMs continue to consider the company when planning autonomous and safety technology roadmaps.
Oppenheimer's stance is tempered by timing expectations - Mobileye itself projects limited revenue from the Mahindra engagement until 2028. Nonetheless, the firm regards the announcement as a positive datapoint for Mobileye's medium- and long-term growth trajectory.
The brokerage reiterated that Mobileye is positioning itself as a preferred partner for automakers aiming to deliver autonomous and safety features in a cost-effective and timely manner. That positioning exists alongside investor concerns about the timing of revenue recognition and competitive dynamics, specifically the potential for market dominance by Tesla and Waymo.
Separately, Mobileye Global Inc. completed a strategic acquisition of Mentee Robotics Ltd. for $900 million, executed with a mix of cash and shares. The purchase expands Mobileye's footprint in robotics.
On the revenue front, Mobileye reported fourth-quarter 2025 sales of $446 million, a 9% decline year-over-year, though the result came in ahead of expectations set by Raymond James and the broader market. In response to recent results and the company's transition phase, Raymond James adjusted its price target for Mobileye to $16.
Other broker actions reflect a range of views. Canaccord Genuity trimmed its price target to $24, citing a cautious stance on Mobileye's partnership with Volkswagen. Mizuho lowered its price target to $11, expressing a conservative perspective on Mobileye's prospects in China. By contrast, Tigress Financial Partners reaffirmed its Buy rating with a $25 target, pointing to upside from developments in driver assistance systems and robotics.
Taken together, the Mahindra agreement, the Mentee Robotics acquisition, the recent quarterly results, and the mix of analyst reactions illustrate a company pursuing strategic growth initiatives while navigating investor concerns over near-term revenue timing and competitive pressures.