InterDigital (IDCC) Down After Conclusion of Strategic Review; Barclays Sees Hope From Positive Q4 Pre-announcement

January 24, 2012 1:41 PM EST
Get Alerts IDCC Hot Sheet
Price: $89.90 +1.01%

Rating Summary:
    2 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 29 | Down: 29 | New: 23
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Shares of InterDigital Inc. (NASDAQ: IDCC) are being crushed, currently down over 18.50%. The outcome of a long strategic review process mounted up to no sale, as IDCC said that bidders were only interested in specific portions of the company's patent portfolio, but not the company as a whole. Investors sold off and Wall Street firm Dougherty & Co downgraded the stock from Buy to Neutral.

However, IDCC issued preliminary Q4 financials of 46 cents, on sales of $74.2 million. Street currently at 37 cents per share and $73.1 million.

In defense, Barclays has maintained its 'Overweight' rating on InterDigital with a price target of $45.00. The firm issued new 2012/13 estimates of $316M/$2.05 and $330M/$2.20.

Analyst, Jeff Kvaal, said, "We expect to spend some time with IDCC over the next week for the first time in over six months. Given the conclusion of the strategic review process, we look forward to hearing an update from the company on its strategy and plans to grow the business in 2012 and beyond."

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 $44.45 yesterday.

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