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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
- UK Court of Appeal rules in favor of InterDigital in dispute with Lenovo • GlobeNewswire Inc. • 07/12/2024 01:10:00 PM
- InterDigital Announces Convertibility of 3.50% Senior Convertible Notes Due 2027 • GlobeNewswire Inc. • 07/03/2024 08:00:00 AM
- InterDigital signs license agreement with Google • GlobeNewswire Inc. • 07/02/2024 08:00:00 AM
- Form 11-K - Annual report of employee stock purchase, savings and similar plans • Edgar (US Regulatory) • 06/20/2024 12:30:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:10:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:10:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:10:29 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 09:26:41 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 08:51:28 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 08:42:45 PM
- InterDigital and Philips to Showcase Volumetric Streaming Technologies Empowering Immersive Sports Experiences at AWE USA 2024 • GlobeNewswire Inc. • 06/11/2024 08:00:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/10/2024 08:30:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:09:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:06:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:04:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:01:44 PM
- 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
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