This stock will ride autonomous driving boom to 20 percent-plus gains this year, Jefferies says

Part of the Mobileye driving assist system is seen on the dashboard of a vehicle during a demonstration for the media in Jerusalem.
Baz Ratner | Reuters

Jefferies initiated coverage of Mobileye with a buy rating, saying its automated-driving chip sales will surge in the coming years.

"We believe MBLY continues to reap the benefits of having established a dominant market share in a rapidly growing segment of the automotive industry, advanced driver assistance systems (ADAS)," analyst David Kelley wrote in a note to clients Friday.

"Given favorable value proposition relative to current radar and LIDAR [light detection and ranging] alternatives, we see continued robust sales growth through 2020."

Mobileye creates the chips, cameras and software that make driver-assistance automation possible for automakers.