Aug. 27--Vehicle collision prevention developer Mobileye (NYSE: MBLY) saw its share price soar to new heights yesterday on Wall Street after nine underwriters initiated coverage of the company. Of the nine underwriters that initiated coverage, seven rated the share "Outperform" or "Buy" while two initiated as "Neutral." One analyst described Mobileye as "the car industry's iPhone moment."
Jerusalem-based Mobileye saw its share price rise 8.5% yesterday to $41.43, giving a market cap of $1.33 billion. In after-hours trading the share price rose a further 1.5% to $42.08. Morgan Stanley (NYSE:MS) initiated coverage with an "Overweight" rating and target price of $46, while Goldman Sachs (NYSE:GS) initiated coverage with a "Neutral" rating and $43 target price.
Trading volume was exceptionally high with 8.26 million shares changing hands yesterday.
Mobileye began trading on the NYSE at the start of the month after raising $890 million at a share price of $25, well above the $600 million it had originally planned to raise.
Morgan Stanley analyst Ravi Shanker observed that he expects about half of all new cars sold worldwide by 2022 to have some sort of advanced driver-assistance or autonomous system. Mobileye has about 80% of the vision-system market now, with sights on 237 car models from 20 manufacturers by 2016, he added.
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