Roth Capital analyst William Gibson shared some insights on Marathon Patent Group Inc (NASDAQ:MARA) following a U.S. district court ruling in favor of defendant Schrader-Bridgeport in a cases revolving around Bridgestone America’s tire-pressure patents. Marathon’s IP Liquidity subsidiary owns the rights to any revenue associated with the case outcome and intends to apeal the ruling.

Gibson observed, “We believe a settlement with Schrader is more likely than not in the next 12 months. We are not changing our earnings estimates because we anticipate multiple settlements, some meaningful in 2015 and 2016.” However, “We our lowering our price target to $9 from $12 because we expect multiples paid in the patent monetization space are likely to remain under pressure. Our price target is based on a P/E multiple of 9x our 2016 estimate, adding back non-cash charges and fully taxing the result. We were previously using a multiple of 12x the same adjusted estimate.”

The analyst maintained a Buy rating on the stock and reduced the price target to $9.00 (from $12). Shares of MARA are currently trading at $3.31, down $0.06, or -1.64.