Needham & Company Reiterates a 'Buy' on AOL, Inc. (AOL); Raising PT on CEO's Quick Actions
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Price: $49.99 --0%
Rating Summary:
1 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on AOL, Inc. (NYSE: AOL) price target boosted from $20 to $31.
Analyst, Laura Martin, said, "We are surprised by the magnitude of the value of this hidden asset. This $1B asset was on no one’s radar 6 weeks ago. This raises the question of what else AOL owns that Wall St is undervaluing, since AOL’s patent portfolio alone was worth more than 50% of the entire market cap of AOL."
"Since AOL’s remaining 300 patents are now generating about $100mm of license fees from Microsoft (Nasdaq: MSFT), this makes us wonder what other companies might be paying AOL to license these 300 patents. We have zero in our model. This event suggests to us that there may be other hidden assets that AOL will now be more eager to unlock."
Martin also feels a large 1-time dividend payment would be a windfall to shareholders. She also feels that AOL's CEO is about action, being a quick decision maker, making this patent deal happen in 3 wks.
For an analyst ratings summary and ratings history on AOL, Inc. click here. For more ratings news on AOL, Inc. click here.
Shares of AOL, Inc. closed at $26.40 yesterday.
Analyst, Laura Martin, said, "We are surprised by the magnitude of the value of this hidden asset. This $1B asset was on no one’s radar 6 weeks ago. This raises the question of what else AOL owns that Wall St is undervaluing, since AOL’s patent portfolio alone was worth more than 50% of the entire market cap of AOL."
"Since AOL’s remaining 300 patents are now generating about $100mm of license fees from Microsoft (Nasdaq: MSFT), this makes us wonder what other companies might be paying AOL to license these 300 patents. We have zero in our model. This event suggests to us that there may be other hidden assets that AOL will now be more eager to unlock."
Martin also feels a large 1-time dividend payment would be a windfall to shareholders. She also feels that AOL's CEO is about action, being a quick decision maker, making this patent deal happen in 3 wks.
For an analyst ratings summary and ratings history on AOL, Inc. click here. For more ratings news on AOL, Inc. click here.
Shares of AOL, Inc. closed at $26.40 yesterday.
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