Mobileye Surges 8%: Citi Heartened by GM Endorsement

By Tiernan Ray Shares of automotive chip maker Mobileye (MBLY) today rose $2.51, or over 5%, to close at $49.43, riding a wave of enthusiasm for chips that may show up in cars from General Motors (GM). Citigroup’s Itay Michaeli, who has a Buy rating on the stock, and a $77 price target, writes that he attended GM’s analyst day presentation yesterday, during which he was encouraged to hear prominent mention of Mobileye by GM. GM’s swapping out traditional radar for Mobileye: GM revealed that it’s currently developing a mono-vision based Adaptive Cruise Control feature (ACC). This is significant because ACC has historically been mainly radar-based. Based on our discussions with GM engineers, we understand that the possibility even eventually exists for a camera-only ACC or traffic jam assist feature (as…


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