Mobileye Rises for Third Day After Presentation at Conference

  • Maker of driverless-car technology cites client ‘validation’
  • Berenberg analyst begins coverage with buy recommendation

Mobileye NV rose the most in three months Friday, heading for a third straight daily gain after analysts reacted positively following a conference presentation Tuesday by the maker of driverless-car technology used by automakers such as Tesla Motors Inc.

The shares climbed 5.8 percent to $38.94 at 2:05 p.m. New York time, after rising as much as 6 percent for the biggest intraday increase since March 16.

“For a small company like ours to break into the automotive industry, you need to solve problems that others can’t. You have to prove yourself over a very costly and time-consuming validation process,” Mobileye Chief Communications Officer Dan Galves said at a William Blair & Co. growth-stock conference June 14. “We’ve already been validated by the great majority of the world’s major automakers.”

The Jerusalem-based company counts General Motors Co. and BMW AG as well as Tesla among clients for its technology, which includes systems for spotting and avoiding pedestrians and other vehicles, driving-behavior controls such as adaptive cruise control, and mapping. Galves told investors that the shift into autonomous driving creates “much higher” transaction prices and deeper customer relationships.

Since the conference, analysts including RBC Capital Markets’ Joseph Spak reiterated outperform ratings. Paul Kratz, an analyst at Berenberg, began coverage of Mobileye with a buy rating. The company is rated buy by 14 analysts and hold by two, with no sell recommendations, according to data compiled by Bloomberg.

While Mobileye has persuaded some analysts of its future prospects -- Spak called it “nearly unparalleled” in terms of growth and valuation -- it has struggled in the past to convince others, topping one list of the most shorted stocks in January.

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