Mobileye's Stock Surges After Analyst Turns Bullish

Mobileye NV's stock surged 4% in premarket trade Thursday, after RW Baird upgraded the driver-assistance systems maker, citing increased confidence in the company's business model following new business awards. Analyst David Leiker raised his rating to outperform, after being at neutral since he started covering the company last August. He boosted his stock price target to $73, which is 35% above Wednesday's closing price, from $47, which was 13% below. "We have been on the sidelines since last year's IPO struggling with elevated expectations, lofty valuation and uncertain outlook for the out years," Leiker wrote in a note to clients. "We are now more comfortable with the pace of active safety adoption (ADAS) and Mobileye's technology position." The stock, which went public on Aug. 1, 2014 at an IPO price of $25, has soared 33% year to date through Wednesday, while the S&P 500 has slipped 0.6%.