Sunday, December 11, 2022 11:33:40 AM
InterDigital has near-term upside and a medium-term opportunity - Jefferies
Stock Markets Dec 09, 2022 04:11PM ET
By Sam Boughedda
Jefferies initiated coverage of InterDigital (NASDAQ:IDCC) with a Buy rating and $80 price target in a note to clients on Friday.
Analysts told investors in a note that the company has posted a three-year revenue CAGR of 11% as it expanded existing relationships and signed new licensees, and they model an 11% CAGR through 2027 that "delivers operating leverage and five-year EPS power of $6.75."
"IDCC is a provider of leading cellular and video compression/streaming IP (>28k total patents and 50% increase in patent assets since '17) that it licenses into the smartphone, consumer electronics, auto, and IoT markets. It has decades-long relationships with Apple (NASDAQ:AAPL), Samsung (KS:005930), LG and Sharp (OTC:SHCAY), multi-year relationships with SONY, Huawei, ZTE (HK:0763) and Google (NASDAQ:GOOGL), and more recently signed Xiaomi (OTC:XIACF) and Vizio. We view its fixed fee, multi-year license contracts with Apple, Samsung, and Xiaomi as providing a highly predictable stream of recurring revs and CFs," explained the analysts.
They went on to state that the company has a near-term upside from smartphone licensing and a medium-term opportunity from consumer electronics (CE).
"IDCC collects ~$350m in recurring revs from smartphone vendors today (primarily Apple, Samsung, Xiaomi, and Huawei), reflecting ~55% market share in smartphones units. Over the next 3 years, we expect additional smartphone revs of $150m, primarily driven by signing unlicensed Chinese vendors (Oppo, Lenovo, and Vivo)," the analysts wrote. "IDCC's annualized recurring revs from CE have more than doubled over the past 1.5 years, growing to ~$54m/yr from ~$23m/yr. We expect additional CE licensing opportunities to add another ~$100m of annual revs over the next 5 years, primarily driven by signing TV manufacturers like Samsung and LG."
Recent IDCC News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:13:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:10:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:07:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:06:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:05:55 PM
- InterDigital Declares Regular Quarterly Cash Dividend • GlobeNewswire Inc. • 06/06/2024 08:30:00 PM
- InterDigital to Present at Upcoming Conferences • GlobeNewswire Inc. • 05/30/2024 12:30:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/06/2024 08:06:54 PM
- InterDigital Announces Financial Results for First Quarter 2024 • GlobeNewswire Inc. • 05/02/2024 12:30:08 PM
- InterDigital awarded injunction against Lenovo • GlobeNewswire Inc. • 05/02/2024 12:30:00 PM
- InterDigital’s Doug Castor Elected Co-Chair of the ATIS Next G Alliance Steering Group • GlobeNewswire Inc. • 04/29/2024 08:00:00 AM
- New Report Pins 6G Success on Novel Benchmarks Extending Beyond Speed, Latency, and Mobility • GlobeNewswire Inc. • 04/25/2024 08:00:00 AM
- InterDigital Announces Date for First Quarter 2024 Financial Results • GlobeNewswire Inc. • 04/19/2024 12:30:00 PM
- InterDigital and Concordia University Announce Research Collaboration on AI-enabled Immersive Media Delivery over 5G Networks • GlobeNewswire Inc. • 04/15/2024 08:00:00 AM
- InterDigital Announces Convertibility of 3.50% Senior Convertible Notes Due 2027 • GlobeNewswire Inc. • 04/04/2024 12:30:00 PM
- InterDigital to Showcase Innovations in High Definition and Sustainable Video Streaming Alongside Partners at NAB 2024 • GlobeNewswire Inc. • 03/26/2024 08:00:00 AM
- InterDigital Declares Regular Quarterly Cash Dividend • GlobeNewswire Inc. • 03/20/2024 08:30:00 PM
- InterDigital’s Xiaofei Wang Appointed Chair of the IEEE 802.11 Artificial Intelligence and Machine Learning (AIML) Standing Committee • GlobeNewswire Inc. • 03/20/2024 08:00:00 AM
- Interdigital to Speak at the 36th Annual Roth Conference • GlobeNewswire Inc. • 03/11/2024 12:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 09:58:21 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/05/2024 09:03:32 PM
- InterDigital’s Atle Monrad Elected Chair of 3GPP’s SA6 Working Group • GlobeNewswire Inc. • 03/05/2024 09:00:00 AM
- InterDigital Honors Wireless and Video Innovation Leaders Michael Starsinic and Fabrice Le Léannec as Inventors of the Year • GlobeNewswire Inc. • 02/22/2024 09:30:00 PM
- Keysight and InterDigital to Demonstrate AI in 6G Systems at Mobile World Congress 2024 • Business Wire • 02/21/2024 04:00:00 PM
- At MWC, InterDigital to Showcase Innovation Empowering Connected Experiences ‘At Work, At Rest, and At Play’ • GlobeNewswire Inc. • 02/19/2024 09:00:00 AM
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