InterDigital Inc (IDCC)

[olddog967]

Desert D: As you say going to an underperform (sell) seems ludicrous. I think the problem is that while he thinks there will be delays in new licenses, his price target was based on a multiple of this year's earnings. While the delay would probably affect investors attitude about the stock, it will not affect this year's earnings.

From his last report

"Our price target is a range of $34-$39, and is derived by applying a 20x-23x multiple to our 2006 EPS estimate of $1.69 (excludes back payments, but counts Nokia and Samsung on a quarterly basis). We believe our multiple is reasonable given the 2006 23x multiple for the NASDAQ Composite and competitor QCOM’s 21x multiple."


I surely don't understand Carpenter.