-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month price target by $3 to $10, based on a 2027 P/E of 20x, a steep but justified discount to the stock's five-year average forward P/E of 55x. We increase our 2026 adjusted EPS estimate to $0.35 from $0.25 and maintain 2027's at $0.50. MBLY posted Q1 adjusted EPS of $0.12 vs. $0.08 (+51%), ahead of the $0.09 consensus. The quarter was characterized by stronger-than-expected sales offset by weaker-than-expected margins, as revenue rose 27% to $558M ($38M above consensus) and adjusted gross margin contracted 240 bps to 66% (20 bps below consensus). We thought the quarter underscored the benefit of MBLY's "capex light" business model, which allows it to generate significant FCF even in more challenging market conditions. In our view, sentiment toward the name had become overly bearish (especially considering MBLY's backlog, gross margins, and large net cash position), prompting a significant short squeeze. MBLY's $250M share repurchase announcement was another positive.