InterDigital Inc (IDCC)

[JimLur]

InterDigital Communications initiated with "buy"

Wednesday, April 14, 2004 12:00:28 PM ET
Independent Research

NEW YORK, April 14 (New Ratings) — Analyst Carter Driscoll of Independent Research Group initiates coverage of InterDigital Communications (IDCC.NAS) with a "buy" rating. The target price is set to $27.

Shares of InterDigital Communications, a US-based wireless communications technology and related products company, are currently trading at $17.17.

According to Independent Research Group’s research note published this morning, InterDigital Communications has created a large portfolio of key wireless technology patents over the past several years. The analyst mentions that the company is well positioned to benefit from the improving wireless industry spending trends in the near term, given its expertise in various wireless platforms. Independent Research Group expects the forthcoming transition in the wireless industry from 2G to 3G platforms to lead to robust license revenue gains for InterDigital Communications in the next few years.

The analyst anticipates healthy royalty payments for InterDigital Communications through the successful resolution of its arbitration with Nokia and Samsung in 2005. Independent Research Group expresses its optimism regarding the company’s additional contract gains in the near term. The current valuation of the company’s stock is attractive, the analyst believes.

The EPS estimates for 2004 and 2005 are $0.00 and $2.05, respectively. The P/E estimate for 2005 is 8.4x.

Independent Research Group initiates coverage of InterDigital Communications with a "buy" rating.

© 2004 New Ratings

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