Canaccord Genuity announced on Friday that it had lowered its price target for Mobileye from $45 to $34, while renewing its buy recommendation on the stock.

For the record, the specialist in autonomous driving technologies yesterday issued a warning on its results for 2024 due to its customers' high inventory levels.

Perhaps we should have seen it coming", say analysts at the Canadian bank.

"After years of global shortages, particularly in the automotive equipment sector, Mobileye was destined to suffer a bullwhip effect as a result of worsening demand in the sector in 2023", they point out.

According to Mobileye, inventories of its 'EyeQ' system-on-a-chip (SoC), which equips front cameras in vehicles, are currently in excess of six to seven million units with its customers.

"This is no mean feat", notes Canaccord, which believes that this warning tarnishes the credibility of the group's management team in providing accurate forecasts, which promises a long recovery for the stock.

All is not doom and gloom, concludes the analyst, who notes that the SuperVision product range, which is very important for the company, does not seem to be affected, while the CES trade show to be held next week could give rise to some pleasant surprises, he adds.

For Canaccord, the stock's correction could therefore represent an interesting entry point for investors taking a long-term view.

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