IDCC - InterDigital: Revenue To Increase On Patent Licensing Agreements Buy

2024-02-14 08:43:55 ET

Summary

• InterDigital is a research and development company specializing in wireless and visual technologies, with a focus on video compression and streaming.
• The company's revenue growth is driven by patent licensing agreements with key players in the wireless connectivity industry, and it has seen significant growth in its patent portfolio.
• InterDigital has a strong balance sheet, with a high cash position and low net debt, positioning it favorably among its peers.
• I see 11% upside for the stock given my strong free cash flow estimates and assign a "buy" rating.

Business Overview/Investment Thesis

InterDigital ( IDCC ) is a prominent research and development company that specializes in wireless, visual, and adjacent technologies. Its core focus is in designing/advancing wireless communication technologies along with developing cellular technologies. Additionally, the company is a leader in video compression and streaming technologies. InterDigital is at the forefront of harnessing Artificial Intelligence to enhance its video coding and support emerging technologies such as 6G networks. The company operates globally (United States, China, South Korea, Japan, Taiwan, and Europe)....

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