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Benchmark Upgrades MIPS Technologies (MIPS) to Buy; Rising Value From Patent Portfolio

May 15, 2012 7:22 AM EDT
Get Alerts MIPS Hot Sheet
Price: $7.98 --0%

Rating Summary:
    1 Buy, 1 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 12 | New: 47
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Benchmark upgraded MIPS Technologies (NASDAQ: MIPS) from Hold to Buy with a price target of $10.00.

Analyst, Gary Mobley, said, "We are raising our rating on shares of MIPS based on a heightened target value for the company’s 580 patents; these have value on a standalone basis or as a key component for the outright sale of the company to a defensive or strategic buyer. We believe the shares offer a compelling risk-reward tradeoff with a $5.00 target supported by the fundamentals of the business, the company’s net cash position and the present value of the royalty stream. For every $100 million increment in the value of the company’s patent portfolio, the value of the company increases by ~$1.90/share."

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

Shares of MIPS Technologies closed at $6.60 yesterday.


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