Analyst Hamed Khorsand of BWS Financial maintained a Buy rating on Adeia (ADEA – Research Report), retaining the price target of $18.00.
Hamed Khorsand has given his Buy rating due to a combination of factors influencing Adeia’s stock. Despite the market’s concerns over tariffs, Adeia’s revenue is primarily derived from long-term agreements with pay TV and streaming video operators, which account for about 85% of its income. This indicates that the company’s exposure to tariff-related risks is minimal.
Additionally, Adeia has been proactive in renewing its licenses, including leveraging a significant video streaming license with Amazon to secure new agreements. Given that semiconductor licenses, which might be affected by tariffs, constitute less than 15% of Adeia’s revenue, the perceived risk impacting the stock price is not as substantial as it seems. These factors contribute to Khorsand’s optimistic outlook and Buy rating for Adeia.
Khorsand covers the Technology sector, focusing on stocks such as Immersion, Adeia, and Ubiquiti Networks. According to TipRanks, Khorsand has an average return of 5.2% and a 47.68% success rate on recommended stocks.