B.Riley FBR Thinks InterDigital’s Stock is Going to Recover


In a report released today, Eric Wold from B.Riley FBR reiterated a Buy rating on InterDigital (IDCC), with a price target of $80. The company’s shares closed yesterday at $49.86, close to its 52-week low of $49.62.

Wold commented:

“We are revisiting InterDigital (IDCC) less than two weeks after reporting 2Q19 results on 8/2 as, we believe, the 22.6% decline in IDCC shares since that time (vs. a decline of 3.3% for the S&P 500) has been unwarranted and earns the company our designation for the great post-earnings overreaction for the current reporting season. Although we lowered our 2019/2020 revenue and EBITDA estimates, this was not due to concerns about IDCC’s growth opportunities and was merely removing, what are expected to be, lumpy projected license wins from the model. In our opinion, this not only creates a more conservative approach to the model, but actually increases the potential for upside surprises and upward revisions.”

According to TipRanks.com, Wold has currently no stars on a ranking scale of 0-5 stars, with an average return of -7.8% and a 35.3% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.

InterDigital has an analyst consensus of Moderate Buy, with a price target consensus of $88, a 76.5% upside from current levels. In a report issued on August 1, National Securities Corp also maintained a Buy rating on the stock with a $96 price target.

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Based on InterDigital’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $7.74 million. In comparison, last year the company had a net profit of $10.71 million.

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InterDigital, Inc. engages in the design and development of technologies that enable and enhance wireless communications, and capabilities. It focuses on mobile technology and devices, which includes cellular wireless technology, Internet of Things, technology, video coding & transmission, sensor and sensor fusion technology.

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