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 that highlight InterDigital’s strong financial performance and promising growth prospects. The company reported impressive first-quarter results, with a notable 30% increase in recurring revenue, primarily attributed to a new licensing agreement with Vivo. This growth is expected to continue, bolstered by an upcoming deal with HP that will enhance InterDigital’s revenue from its Wi-Fi and video patents.
Furthermore, Bhatia emphasizes the resilience of InterDigital’s business model, which is largely based on long-term fixed-fee contracts. These agreements provide stability and are not affected by fluctuations in product shipments or sales, making the company less vulnerable to broader economic uncertainties. Additionally, InterDigital has significant growth opportunities in various markets, including smartphones in China, consumer electronics, IoT, and streaming video, which could potentially rival the size of the smartphone market in the future.
Bhatia covers the Technology sector, focusing on stocks such as InterDigital, Five9, and Salesforce. According to TipRanks, Bhatia has an average return of -1.6% and a 40.29% success rate on recommended stocks.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $230.00 price target.