Samsung's Interest in InterDigital (IDCC) 'Highly Probable'; Expect More to Come - M Partners
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Price: $99.66 +0.74%
Rating Summary:
7 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
7 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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After starting strong on new buyout reports, shares of InterDigital, Inc. (Nasdaq: IDCC) are picking up momentum mid-day following sell-side comments suggesting the company could be worth more than double the current value.
In an intra-day note, M-Partners commented on today's report that Samsung could be interated in the company in addition to Apple and Google.
The firm believes Samsung's interest in InterDigital is "highly probable." The firm notes the fact that Samsung's $100M per annum 3G royalty agreement with IDCC is up for renewal in 2012. In addition, Samsung is already in a significant intellectual property battle with Apple. In the hands of Samsung, 3G renewals and 4G/LTE extensions could turn out to be more punitive for Apple.
The firm notes that events are unfolding exactly as they expected two weeks ago and more bidders are likely to come to the table.
The firm thinks the company's 9,700 pending patents would be worth between $118-$167 per share. The value of the engineers could be worth another $18 per share.
M Partners reiterated their Buy rating and $118 price target, and urges investors to buy the stock at current levels.
For more ratings news on InterDigital Inc. click here and for the rating history of InterDigital Inc. click here.
Shares of InterDigital are up 10.9 percent intra-day to $70.09.
In an intra-day note, M-Partners commented on today's report that Samsung could be interated in the company in addition to Apple and Google.
The firm believes Samsung's interest in InterDigital is "highly probable." The firm notes the fact that Samsung's $100M per annum 3G royalty agreement with IDCC is up for renewal in 2012. In addition, Samsung is already in a significant intellectual property battle with Apple. In the hands of Samsung, 3G renewals and 4G/LTE extensions could turn out to be more punitive for Apple.
The firm notes that events are unfolding exactly as they expected two weeks ago and more bidders are likely to come to the table.
The firm thinks the company's 9,700 pending patents would be worth between $118-$167 per share. The value of the engineers could be worth another $18 per share.
M Partners reiterated their Buy rating and $118 price target, and urges investors to buy the stock at current levels.
For more ratings news on InterDigital Inc. click here and for the rating history of InterDigital Inc. click here.
Shares of InterDigital are up 10.9 percent intra-day to $70.09.
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