Barclays cuts Mobileye stock rating on lack of advanced wins

Barclays has downgraded its rating on Mobileye stock, citing a lack of significant advancements in the company's advanced content and autonomy sector. The brokerage firm reduced its rating from Overweight to Equalweight and lowered its price target to $9.00 from $14.00. Barclays had previously upgraded Mobileye earlier in the year, anticipating positive risk-reward and potential growth showcases.

Despite resilient near-term results, Barclays sees persistent overhangs that limit the potential for multiple re-ratings, such as the absence of major advanced content wins, expanding China pressures due to increased exports, concerns regarding Volkswagen partnerships, and uncertainties surrounding Mobileye's CEO transition at a critical juncture.

The stock has fallen 28% this year, contrasting with a 12% gain for the S&P 500. Barclays' decision aligns with the sentiment of 19 analysts who have revised their earnings estimates for the upcoming period in an upward direction. Mobileye recently reported a Q2 2026 revenue of $508 million, surpassing analysts' expectations of $475 million and projecting fiscal 2026 revenue to reach around $2.0 billion, slightly exceeded the consensus forecast of $1.98 billion.

The company anticipates 39 million EyeQ units in 2026, an increase from the prior estimate of 38 million units. Following Mobileye's Q2 results, several other analysts have revised their ratings and price targets. Berenberg upgraded Mobileye to a Buy with a $11.00 price target, highlighting mid-term growth prospects, while Piper Sandler raised its rating to Overweight with a $12.00 price target, focusing on the company's robotaxi initiatives.

Tigress Financial increased its price target to $18.00, emphasizing Mobileye's progress across various business segments. However, UBS and Mizuho reduced their price targets to $9.00 and $8.00, respectively, following the resignation of Mobileye's CEO, Amnon Shashua.