12:36 PM EDT, 10/04/2024 (MT Newswires) -- Mobileye Global's ( MBLY ) partnerships with non-Chinese automakers still hold value, but a return to growth is likely pushed to 2025 with significant negative revisions expected in revenue forecasts for 2025 through 2027, UBS Securities said in a note Friday.

The company's growth story, which was heavily reliant on its advanced SuperVision system, has faced significant delays as Zeekr opted for an in-house solution and there are volume concerns from other customers like FAW and Polestar, according to the note.

"We do not see SuperVision re-acceleration until 2026 when the Volkswagen Group award should begin," UBS added.

The investment firm said it could change its neutral stance on Mobileye if there is evidence of faster adoption of its advanced products, driven by legacy automakers aiming to compete with Tesla (TSLA) and Chinese original equipment manufacturers.

UBS downgraded its rating on the company's stock to neutral from buy and reduced the price target to $14 from $20.

The rating downgrade is driven by underperformance, market appreciation of the company's challenges, and longer-term uncertainties, UBS said.

Mobileye shares were up 4% in recent trading.

Price: 12.89, Change: +0.49, Percent Change: +4.00