Rosenblatt Starts Adeia (ADEA) at Buy, '30-Year-Old Start-up Poised for Profitable Growth'

Rosenblatt analyst Kevin Cassidy initiates coverage on Adeia (NASDAQ: ADEA) with a Buy rating and a price target of $15.00.

The analyst commented, "We are initiating Adeia coverage with a Buy rating and $15 12-month price target. We view Adeia’s profitability profile among the best in public markets with solid growth potential in both media and semiconductor IP. We view Adeia’s media IP portfolio as fundamental technologies for all video platforms including Pay-TV, OTT, social media, Consumer Electronics and emerging adjacent markets. In semiconductors, Adeia’s technologies are delivering Moore’s Law-type of performance gains and cost declines. As Moore’s Law nears physical and economic limits, we see Adeia’s semiconductor technology increasingly adopted. We view the ADEA shares as undervalued trading at 8x NTM earnings while we see ~5% 5-year CAGR with operating margin above 60%. We believe ADEA shares have been overlooked by investors since its separation from Xperi in October, 2022. We recommend investors own the ADEA shares as this 30-year-old start-up as video migrates to new platforms and demand for higher performance semiconductors accelerates."

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

Shares of Adeia closed at $11.86 yesterday.

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