MBLY - Mobileye: Time To Be Contrarian

2024-02-19 10:45:30 ET

Summary

• Having provided a preliminary guidance for 4Q23 and 2024, the results and guidance for the next year was priced in and in-line with expectations.
• In 2023, SuperVision volumes scaled to 102,000 units and it is expected to ramp further to between 175,000 and 195,000 SuperVision units in 2024.
• The company achieved significant design wins in 2023, diversifying its customer base and increasing confidence in its solutions.
• The total value of the design wins achieved in 2023 amounted to $7 billion, a second year in a row it achieved this.
• Management expects more design wins in 2024, likely in 2H24.

Mobileye ( MBLY ) 4Q23 results that were recently published reflected the preliminary guidance that was provided earlier in January, but I found the 4Q23 results incrementally positive for both the near-term and long-term for Mobileye.

With Mobileye down more than 40% from its highs, I argue that this is the time to be a contrarian, especially for patient long-term investors....

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