Barclays Maintains an 'Overweight' on InterDigital (IDCC); Disappointing Near-Term Guidance

Barclays maintains an 'Overweight' on InterDigital Inc. (NASDAQ: IDCC), PT lowered by $1 to $55.

Barclays analyst says, "Yesterday, InterDigital provided disappointing 2Q revenue guidance below our estimates. Headwinds from Japan and tempered expectations from the company's non-Japan per-unit segment were the primary drivers of the sequential sales decline. We edge our estimates and target lower. Catalysts remain the potential LG renewal and a ruling from the court of appeals on the outstanding litigation with Nokia (NYSE: NOK)."

"Following lower than expected 2Q guidance, we reduce our outlook for the company. For 2011 and 2012 our sales and EPS estimates move to $300.8M/$1.82 and $337.2M/$2.25 respectively. Out estimates continue to exclude the value of a renewal with LG. Our price target edges lower to $55, or ~14x our CY12 LG adjusted EPS estimate of $3.05 plus ~$12 a share in net cash."

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 $45.13 yesterday.

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