Acacia Could be Courting Openwave (OPWV) - Wedbush
OPWV Hot Sheet
Rating Summary:1 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 18 | New: 27
Shares of Openwave Systems (NASDAQ: OPWV) are seeing pre-open interest following positive comments at Wedbush.
The firm said Acacia (Nasdaq: ACTG) could be courting Openwave. They commented, "Acacia Research announced on 2/16/2012 that it had raised $225 million in a private placement of its common stock. Acacia would have ~$440 million in cash following the close of the placement. The company’s management said that they are “currently exploring a potential significant acquisition of all of the issued and outstanding capital stock of a third party and have commenced due diligence efforts” and expect an acquisition to close by the end of Q1 to early Q2. We would note that Acacia is a key player in mobile patents and had licensed 74 patents in 2010 to Microsoft obtained from Access, Palm, PalmSource, Bell Communications Research, and GeoWorks. Openwave recently licensed patents to Microsoft for $30 million. We note that our checks and discussions highlight the value of Openwave’s foundational patents that underpin mobile data, application stores, and IP messaging. As we connect the dots, we believe Openwave could likely fit the bill for potential targets for Acacia, although others may exist."
Openwave is in the process of selling its operating units, which is the other key component to extracting value, the firm also noted.
Also, the size of Acacia’s capital raise could signify meaningful upside to Openwave's current valuation. A sum-of-part analysis showed a value between $2.72-$5.80 per share.
The firm reiterated their Outperform rating and $3 price target.
For an analyst ratings summary and ratings history on Openwave Systems click here. For more ratings news on Openwave Systems click here.
Shares of Openwave Systems closed at $2.29 yesterday, with a 52 week range of $1.17-$2.53.
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The firm said Acacia (Nasdaq: ACTG) could be courting Openwave. They commented, "Acacia Research announced on 2/16/2012 that it had raised $225 million in a private placement of its common stock. Acacia would have ~$440 million in cash following the close of the placement. The company’s management said that they are “currently exploring a potential significant acquisition of all of the issued and outstanding capital stock of a third party and have commenced due diligence efforts” and expect an acquisition to close by the end of Q1 to early Q2. We would note that Acacia is a key player in mobile patents and had licensed 74 patents in 2010 to Microsoft obtained from Access, Palm, PalmSource, Bell Communications Research, and GeoWorks. Openwave recently licensed patents to Microsoft for $30 million. We note that our checks and discussions highlight the value of Openwave’s foundational patents that underpin mobile data, application stores, and IP messaging. As we connect the dots, we believe Openwave could likely fit the bill for potential targets for Acacia, although others may exist."
Openwave is in the process of selling its operating units, which is the other key component to extracting value, the firm also noted.
Also, the size of Acacia’s capital raise could signify meaningful upside to Openwave's current valuation. A sum-of-part analysis showed a value between $2.72-$5.80 per share.
The firm reiterated their Outperform rating and $3 price target.
For an analyst ratings summary and ratings history on Openwave Systems click here. For more ratings news on Openwave Systems click here.
Shares of Openwave Systems closed at $2.29 yesterday, with a 52 week range of $1.17-$2.53.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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