11:16 AM EST, 02/10/2025 (MT Newswires) -- Mobileye Global's ( MBLY ) 2025 guidance offers stability despite cautious views on growth and profitability, and potential contract wins could act as catalysts as investors sentiment appears to be bottoming, BofA Securities said in a note on Monday.

BofA analysts said they believe the autonomous driving technology company's 2025 outlook "limits downside risks to estimates," even though the guidance was below consensus and BofA estimates. The company said last month it was expecting full-year revenue of $1.69 billion to $1.81 billion and adjusted operating income of $175 million to $260 million. Analysts surveyed by FactSet expect $1.92 billion in revenue.

Potential wins include a SuperVision/Chauffeur deal with a Japanese automaker, and Surround advanced driver assistance system contracts with a European and a US automaker, though volume production may not start for several years, according to the note.

BofA expects that the advanced driver assistance systems volumes will remain steady through 2040, autonomous vehicle adoption will be gradual, and SuperVision and Chauffer may take until 2030 to achieve widespread availability. The analysts also said it could take until 2027 for earnings growth "to inflect more positively."

BofA upgraded its rating on Mobileye's stock to neutral from underperform and raised the price target to $19 from $12.

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