With more than 32,000 patents, InterDigital Wireless Inc (NASDAQ: IDCC) has significant earnings power, Oppenheimer said in a bullish initiation.
The InterDigital Analyst: Ian Zaffino initiated coverage of InterDigital with an Outperform rating and $90 price target.
The InterDigital Takeaway: “The patents are licensed on a multi-year basis and create a highly predictable, recurring revenue stream,” Zaffino said in the Wednesday initiation note.
Here are some of the analyst's key takeaways on the company:
- IDCC is a leading R&D company. Its patents comprise 6% of all 5G patents integrated into major wireless standards. Some of the company’s consumers include Apple, Samsung, LG and Huawei.
- InterDigital has a strong record of IP enforcement, and recently renewed its license with Huawei. “This could smooth the way to license the other handset makers that use its technology,” said Zaffino.
- The recent acquisition of Technicolor gives IDCC a path to generate another $150 million of annual revenues within the next three to five years. This effort could create incremental EPS of $4.
- Potential licensing deals with Chinese manufacturers that are using IDCC technology.
IDCC Price Action: Shares of InterDigital closed Thursday's session higher by 3.62% at $58.11.
Latest Ratings for IDCC
|Jul 2020||Oppenheimer||Initiates Coverage On||Outperform|
|Jan 2020||B. Riley||Reiterates||Buy|
|Aug 2019||B. Riley FBR||Maintains||Buy|
View More Analyst Ratings for IDCC
View the Latest Analyst Ratings
See more from Benzinga
- AudioCodes Will Benefit From Accelerating Teams Voice Deployment, Needham Says
- Why Microsoft Is Morgan Stanley's Top Pick Ahead Of The Q4 Print
- Why E-Commerce Is The No. 1 Stay-At-Home Theme
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.