Mobileye's Stock Shoots Up After Goldman Sachs Turns Bullish

By Tomi KilgoreMarketsMarketWatch Pulse

Mobileye N.V.'s stock shot up 4.9% to a four-month high in morning trade Thursday, after the maker of cameras used in driverless cars was upgraded at Goldman Sachs. Analyst Alexander Duval raised his rating to buy after being at neutral for the past seven months, and raised his stock price target to $50--13% above current levels--from $40. Duval said Mobileye is "well placed" for opportunities in the next stages of autonomous driving, after the company has announced 10 production deals, including those with BMW, Audi and Nissan. He also believes the company's crowd-sourced mapping offering can "strengthen product stickiness" and be a key enabler for full autonomy. "We expect the stock to re-rate on the back of earnings momentum and potential further wins in fully autonomous driving," Duval wrote in a note to clients. The stock has rallied 55% over the past 12 months, while the S&P 500 has gained 21%.

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