Mobileye Global (MBLY.O): Initiating Coverage with a Buy Rating and a $11 PT

Citi initiates coverage on Mobileye Global (MBLY.O) with a Buy rating and a US$11 price target. In our view, the global auto industry will continue to find ways to improve vehicle safety, and autonomous technology is at the forefront of improvement over the next decade. Mobileye has been a global leader in advanced driver assistance systems (ADAS) for 25 years and has extended into autonomous driving technologies. Mobileye systems have been installed on about 1,400 different models and over 230 million vehicles worldwide. In the US, the installation rate of advanced safety systems has expanded from below 20% in 2015 to close to above 90% on most components, with similar rates in Europe and continued expansion in China at the upper end of the market. Our target is based on 12.0x EV/EBITDA, averaging the valuation levels for the Supplier Comp Group (6.1x) and auto-related semiconductor names (17.0x), applied to our 2026-28 assumptions.