Analyst Coverage of InterDigital

[Thanks to Jim Lurgio, moderator of IHub's InterDigital message board for helping make these full reports available]

Updated: August 23, 2009        

Dates of relatively recent reports are in red below

Hilliard Lyons: Tom Carpenter    August 20, 2009

Reiterate BUY  Target $36 share price

"Nokia wins round at International Trade Commission. InterDigital intends to appeal in attempt to overturn ruling on at least one of sixteen claims. Judge rules Nokia does not infringe on four of InterDigitals patents. He ruled that four patents (covering sixteen claims in the patent infringement case) are valid but that Nokia's 3G handsets do not infringe.... Claims construction is an increasingly appealable and winable issue at the ITC.... If Nokia and InterDigital settle, we believe a deal could be worth over $30 million for 3G..... We believe there is value to be unlocked at InterDigital, given its $6 per share cash positioon (no debt)  $3 net cash due from

Samsung in 2010, 3G and 4G licenses still to be signed". READ THE FULL AUG 20th REPORT

MORE: Hilliard Lyons: Tom Carpenter report of July 29, 2009       

CNBC: What is your best idea for this Friday?                                     (August 7, 2009) Christopher Trompeter, managing director of Tradition Capital Management: "Using the wireless idea as a jumping off point, we like InterDigital Communications Corporation, a company that has a portfolio of wireless patents that they license to mobile device manufacturers. The catalyst for ther stock to move higher in the short term is that there is a suit that InterDigital filed against Nokia that an administrative law judge is going to rule on sometime next week. We think that there is going to be a settlement, perhaps in advance of the ruling between the two companies, in which Nokia will pay InterDigital a per handst licensing fee."   View this CNBC Video             MORE on analyst Christopher Trompeter

http://www.cnbc.com/id/15840232?video=1207999533&play=1

The Street.com Rating  (July 31, 2009)

BUY  Target: $39.13 share price

WirelessLedger.com comment of this report: This is the the first of what we expect to be a number of computer driven analyses (vs analysis by a human) of InterDigital based on its rapid increase in earnings, largely from the licensing of Samsung. This computer driven report does not recognize that there will be a judgment August 14th by the U.S. Intl Trade Commission that could lead to as much as $400 million in extra revenues for InterDigital. The target share value of $39 would not seem to recognize that potential revenue/earnings event either).

This report:  "We rate InterDigital (IDCC) a BUY.  This is driven by a few notable strengths. which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The Company's strengths can be seen in multiple areas such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel that these stengths outweigh the fact that the Company is trading at a premium valuation based on our review of current price compared to such things as earnings and book value.

Davenport & Company: Bennett Notman, CFA  ( March 30, 2009) 

Upgrades recommendation from neutral to buy, with a 12 month price target of $30. Target is based on multiple of 13 times their EPS estimate for 2010 of  $2.40. "With the fate of the SlimChip business now determined, we believe that one of the primary risks to the IDCC story has been removed. In our opinion, IDCC shares offer investors a compelling risk/reward profile.   Were the company to successfully negotiate an agreement with NOK, our current estimates would need to move materially higher. Finally, with the Samsung agreement, IDCC has reached the point where more than 60% of revenue is contractually guaranteed, providing the company with much greater visibility than other "technology players. 

Trantum Investment Management:  Thomas A. Trantun, CFA  (March 18 ,2009)

"InterDigital has graduated to a new level/visibility in cellular technology. Approximately 50% of industry suppliers of 3G handsets pay IDCC a royalty, leaving out only Nokia and SonyEricsson which will likely join the ranks by year end. Beyond 2009, core earnings should be in the $3.00 per share level which should support a $45 stock price. A premium above this level depends on the successful uses and deployment of excess cash. Despite the world’s economic travails, people-to-people/people-to-device/device-to-device wireless communications demand is expanding exponentially and InterDigital owns substantial intellectually property that will be at the forefront of network development as far as the eye can see. "

Hilliard Lyons: Tom Carpenter   (March 16, 2009)

We are raising our rating to Buy from Neutral. "We rate the shares Buy with a $35 price target. We believe the 32% share price reversal since early February 2009 is overdone. InterDigital’s 3G patent infringement case is moving towards a scheduled ruling by year-end..InterDigital could generate over $500 million in new revenue from 3G licenses with Nokia and Sony Ericsson.....We project that InterDigital will generate $312 million of revenue and $2.01 of EPS in 2009. This includes Samsung, but does not include Nokia and Sony Ericsson. Our 2010 estimate is $410 million of revenue and $3.51 of EPS, and includes revenue from Nokia and Sony Ericsson.

Boenning & Scattergood:  Michael F. Ciarmoli and Kevin Ciabattoni (January 16, 2009)     

Issued  last  January, there may be a more recent report that has not become public.  "Samsung Licensing Agreement Finalized — 2G/3G Deal Valued at $400m
Maintain Outperform Rating, Lifting Price Target to $35 from previous $29. We believe the $400m Samsung 2G/3G deal greatly improves IDCC’s financial position, reduces the company’s overall risk profile, and adds further validity and credibility to the company’s patent licensing model.. we believe the Samsung deal has effectively created a $23 floor on IDCC shares which in our view significantly improves the risk/reward profile. We would continue to advise investors to take advantage of favorable entry points that may arise due to overreactions stemming from legal news.