InterDigital Inc (IDCC)

[Gamco]

InterDigital initiated with an Underperform at BofA

Jul. 25, 2022 2:01 PM ETIDCCBy: Pranav Ghumatkar, SA News Editor

BofA analyst Tal Liani initiated coverage of InterDigital (IDCC) with an Underperform rating.

The R&D and patent provider within the wireless, video, and AI industries has a robust recurring revenue model from charging fixed-fee rates for access to its patent portfolio, said Liani,

The analyst models growth to decelerate to only 2% in 2022/23 as growth is largely a function of new customer deals.

He also expect solid 5G growth, but remains cautious on the long-term runway, arguing that valuation and long-term growth catalysts remain concerns.

InterDigital's SA Quant Rating says Buy whereas, Wall St. Analysts Rating stands with Strong Buy (1 Very Bullish, 1 Bullish).

Since the start of 2022, InterDigital's shares were down around 20%, and over a period of one year, shares were down around 10%.

Shares are currently -7.65% to $58.09 today.