Dougherty & Co Upgrades InterDigital Inc. (IDCC) to Buy; Takeout Possibility Trumps Nokia Uncertainty

July 20, 2011 9:42 AM EDT
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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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Dougherty & Co upgraded InterDigital Inc. (NASDAQ: IDCC) to Buy. PT increased from $41 to $68.

Dougherty analyst says, "We are upgrading InterDigital to Buy on the premise that the company is a likely takeout candidate in the wake of Nortel’s 6,000 patents and patent applications selling for $4.5B on June 30 to a consortium that included Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT), which beat out Google (Nasdaq: GOOG) and Intel (Nasdaq: INTC). At an average of $750K per patent/patent application, this group paid roughly 7.5x where the market is currently valuing IDCC’s patents (~$100K apiece). We believe an acquisition could close the valuation gap, hence the board’s decision on Tuesday to announce that it is pursuing “strategic alternatives.”"

For more ratings news on InterDigital Inc. click here and for the rating history of InterDigital Inc. click here.

Shares of InterDigital Inc. closed at $53.26 yesterday.

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