Dougherty & Co Downgrades InterDigital Inc. (IDCC) to Neutral; No Sale - Lowering Estimates & PT

January 24, 2012 9:59 AM EST
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Price: $90.15 --0%

Rating Summary:
    2 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Dougherty & Co downgraded InterDigital Inc. (NASDAQ: IDCC) from Buy to Neutral with a price target slashed from $68 to $38.

Dougherty analyst said, "IDCC ended its six month review of “strategic alternatives” without a sale of the company. Given the timing, this is not a surprising result. We suggested in our July upgrade that we would get nervous if nothing happened by last November."

"So what now? InterDigital returns to the same place it was when we had it Neutral-rated prior to July, with its appeal in the Nokia case looming large. We had a $41PT then, but licensees RIM (Nasdaq: RIMM) and HTC have lost some market share since. Running an updated look at RIMM/HTC through our DCF-based model causes us to lower our price target to $38."

(Lowers FY12 EPS estimate to $1.51 from $3.39; 2012 Revenue to $288MM from $424MM)

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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