William Blair analyst Arjun Bhatia has maintained their bullish stance on IDCC stock, giving a Buy rating on November 4.
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Arjun Bhatia’s rating is based on InterDigital’s strategic litigation efforts and potential revenue gains. The company has initiated legal action against Amazon for allegedly infringing on its video compression technology patents, marking its second such litigation following a similar case against Disney. These legal pursuits are aimed at unlocking a significant revenue opportunity, potentially exceeding $300 million by 2030, which would substantially enhance InterDigital’s current revenue streams.
Moreover, Bhatia notes that the legal actions could lead to favorable outcomes for InterDigital, especially considering the recent developments where Amazon sought an interim license in the U.K. that was not granted. Additionally, the recent patent licensing agreement between Amazon and Nokia is seen as a positive indicator for InterDigital, suggesting a potential for similar agreements that could further monetize its patent portfolio. These factors collectively contribute to the Buy rating for InterDigital’s stock.
In another report released on November 4, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $454.00 price target.