William Blair analyst Arjun Bhatia has maintained their bullish stance on IDCC stock, giving a Buy rating today.
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Arjun Bhatia has given his Buy rating due to a combination of factors including InterDigital’s recent successful signing of a multiyear licensing agreement with a major Chinese smartphone vendor, which has significantly boosted the company’s annual recurring revenue (ARR) by $26 million. This agreement has not only increased their third-quarter revenue outlook but also strengthened their position in the smartphone market by securing contracts with 8 of the top 10 global smartphone manufacturers, covering a substantial portion of the market.
Furthermore, the potential upside from increasing smartphone retail prices and the anticipated renewal of existing agreements, particularly with the upcoming 6G cycle, adds to the company’s growth prospects. The stock’s current valuation, trading at 29.9 times the 2026 EBITDA estimate, along with its dividend yield, presents an attractive investment opportunity, especially considering the expansion potential in the smartphone segment and other consumer markets.
Bhatia covers the Technology sector, focusing on stocks such as Atlassian, Sprout Social, and InterDigital. According to TipRanks, Bhatia has an average return of 4.0% and a 49.76% success rate on recommended stocks.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $350.00 price target.