William Blair analyst Arjun Bhatia has maintained their bullish stance on IDCC stock, giving a Buy rating today.
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Arjun Bhatia’s rating is based on InterDigital’s strong third-quarter performance and strategic growth initiatives. The company reported a significant increase in recurring revenue, primarily due to a new smartphone licensing agreement, which has positioned InterDigital favorably with 8 of the top 10 smartphone vendors. Additionally, the company’s acquisition of Deep Render, an AI start-up specializing in video codecs, aligns with its strategy to capitalize on the growing streaming video market.
Despite the stock’s high valuation, Bhatia remains optimistic about InterDigital’s potential for growth. The company has tightened its full-year revenue guidance, reflecting confidence in its existing contracts, and any new licenses would further enhance its financial outlook. The potential for new partnerships in the smartphone sector, opportunities in consumer electronics, and the long-term prospects in the streaming video market are key factors supporting the Buy rating.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $425.00 price target.