Immersion: Cheap But Lacking Catalysts - Hold

2025-03-21 21:44:40 ET

Summary

• Immersion Corporation's Q3/FY25 results were boosted by the consolidation of Barnes & Noble Education and substantial gains from investments in marketable securities.
• However, core licensing revenues of $8.4 million were down by more than 40% from an already muted second quarter numbers and are not likely to recover meaningfully anytime soon.
• While the company trades at a negative enterprise value, market participants are not likely to re-rate the core business without new high- profile licensing agreements.
• With the fall rush now in the rear view mirror, the consolidation of Barnes & Noble Education will become a headwind for the next couple of quarters.
• Given the near-term headwinds, I don't see a compelling reason to initiate or add to existing positions in the shares.

Note:

I have covered Immersion Corporation or "Immersion" (NASDAQ: IMMR ) previously, so investors should view this as an update to my earlier articles on the company. ...

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