Mobileye initiated with a Buy at HSBC

HSBC initiated coverage of Mobileye with a Buy rating and $33 price target as the analyst extended the coverage universe to include three U.S.-based auto suppliers. Mobileye stands out from its peers for its “superior” gross and operating margin, as well as its 100% exposure to Advanced Driver Assistance Systems, or ADAS, the analyst tells investors. Its portfolio is focused on two main products, the EyeQ Drive Assist and the Supervision, which is still in the ramp-up phase, the analyst explained, adding that growth of the Supervision system is “a game changer for the company.”