Barclays Maintains an 'Equalweight' on Acacia Research (ACTG); 3Q Results Driven by Stronger Patent Portfolio; Management's Outlook Positive

Barclays maintains an 'Equalweight' on Acacia Research (NASDAQ: ACTG) price target of $45.00.

Barclays analyst says, "ACTG reported 3Q revenues of $51mn, slightly ahead of street expectations of $47mn. While revenues came in slightly shy of our estimate of $53mn (with EPS also light of our estimate), we believe the overall results were solid and reflective of ACTG's ability to generate strong revenues from an increasingly more valuable patent portfolio. That said, while results may have been enough to exceed seemingly low investor expectations in the absence of a structured-term license deal, with shares trading at approximately 30x our normalized 2012 EPS estimate, we look for greater visibility on the timing and amount of future licensing revenues before becoming more constructive at current levels."

"ACCESS Portfolio: While ACTG continues to generate strong revenues from the ACCESS patents (with licenses to Pantech, Nokia, RIM during 3Q), management believes that ACTG has likely not yet received even 50% of the potential revenues from these patents, and noted lawsuits recently filed against Apple (Nasdaq: AAPL), HTC and Amazon (Nasdaq: AMZN)."

For more ratings news on Acacia Research click here and for the rating history of Acacia Research click here.

Shares of Acacia Research closed at $38.55 yesterday.

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