Goldman Sachs downgraded Mobileye N.V. (NASDAQ:MBLY) from Buy to Neutral, maintaining its price target at $17. The decision reflects growing concerns about heightened competition, a more cautious outlook on adoption rates for autonomous and advanced driver-assistance systems (ADAS), and a valuation that already prices in near-term potential.
While Mobileye remains a technically strong player in the autonomous vehicle space, Goldman noted that the breadth of automakers adopting its systems has been narrower than anticipated, particularly in China and other global markets. Some carmakers are opting for in-house development or sourcing from other tech and semiconductor providers.
Although Mobileye has established important partnerships, including with Volkswagen and ride-hailing services such as Uber and Lyft, Goldman sees limited upside over the next few years. The firm expects the broader autonomous vehicle market to remain small and mostly commercial through at least 2027, delaying the scale needed to materially lift earnings.