InterDigital (IDCC): Investor Day Preview, Raising PT - B.Riley

September 6, 2016 6:25 AM EDT
Get Alerts IDCC Hot Sheet
Price: $89.20 +0.22%

Rating Summary:
    2 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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B. Riley analyst, Eric Wold, reiterated his Buy rating on shares of InterDigital Inc. (NASDAQ: IDCC) ahead of the Investor Day in New York City on 9/22. The analyst believes the company’s IoT (“Internet of Things”) royalty opportunity will be a focus of the Investor Day with management likely to frame IDCC’s IoT position in terms of the key OEM partnerships, expected royalty rates, inclusion in platform standards and overall revenue growth contribution potential. The analyst believes IDCC’s IoT royalty opportunity remains underappreciated in both consensus estimates and IDCC’s valuation, making this event a key positive catalyst to take IDCC shares to the next level.

IHS projections for nearly 6.0B cellular-connected devices installed by 2018 and IDCC’s strong patent position within the cellular segment bode well for the company. Even assuming IDCC gets agreements representing 50% of those devices with an average royalty rate of $0.015, this would still yield revenues of approximately $45MM to IDCC.

The analyst also increased his price target to $80 from $73.

For an analyst ratings summary and ratings history on InterDigital Inc. click here. For more ratings news on InterDigital Inc. click here.

Shares of InterDigital Inc. closed at $71.96 yesterday.

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