In a report released yesterday, Mike Crawford from B.Riley FBR maintained a Buy rating on Finjan Holdings (NASDAQ: FNJN), with a price target of $5. The company’s shares opened today at $3.43, close to its 52-week high of $3.70.
Crawford noted:
“We believe this is a significant outcome for FNJN, netting a cross license to some of Trend Micro’s IP and securing a revenue, cash, and likely earnings windfall ahead of our model, as previewed in our 6/21 report, “Earnings Raising Finjan Estimates into 2Q Print.” The size of the license, which includes access to Finjan Blue patents as well as Finjan, Inc. and Finjan Mobile IP , equates to approximately 1% of Trend Micro’s global revenue, given projections from six analysts for $1.4B Trend Micro revenue for the $6.3B valued, Tokyo-based company. Further, as Finjan crafted this agreement purely through license negotiations without having to resort to litigation, this means legal contingency fees showing up in cost of revenue should be less than 10%, likely closer to 5% in our initial estimation.”
According to TipRanks.com, Crawford is a 4-star analyst with an average return of 8.7% and a 58.0% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Kratos Defense, Ducommun Inc, and ViaSat.
Finjan Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $5.
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Finjan Holdings’ market cap is currently $99.24M and has a P/E ratio of 3.78. The company has a Price to Book ratio of 1.66.
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Finjan Holdings, Inc. is a cybersecurity company, which engages in the development and provision of cyber security technology and services. It operates through the following business lines: Intellectual Property Licensing and Enforcement; Mobile Security Application Development; Advisory Services; and Investing in Cybersecurity Technologies and Intellectual Property. The company was founded in January 2006 and is headquartered in East Palo Alto, CA.
