Baird an 'aggressive' buyer of Mobileye on today's selloff

Baird analyst David Leiker says his firm is an "aggressive" buyer of Mobileye (MBLY) shares this morning on the post-earnings selloff. The stock is trading down on Mobileye's decision to not pursue incremental next-generation business with Tesla (TSLA), Leiker tells investors in a research note. Tesla sales are estimated to be just 1% of current sales and 2% of 2019 sales, the analyst points out. He believes moving away from Tesla "reduces the headline risk" for Mobileye as Tesla builds out its self-driving capabilities. Mobileye is mostly a component supplier of vision systems to Tesla while much of sensor fusion and driver policy is controlled the electric carmaker, Leiker contends. The analyst has an Outperform rating on Mobileye with a $58 price target. The stock is trading down 12% to $43.33 heading into the open of trading.