IDCC: Share Momentum Will Accelerate With Streaming and Smartphone Licensing Wins

InterDigital's analyst price target has increased significantly from $328.75 to $412.00, as analysts cite recent strong licensing wins, improved revenue guidance, and promising long-term opportunities across multiple business segments.

Analyst Commentary

Analysts have weighed in on InterDigital's recent performance and prospects, providing new price targets and perspectives on the company's outlook following significant business developments. Their assessments reflect a mix of enthusiasm for the company's growth initiatives and some caution regarding future execution and market challenges.

Bullish Takeaways

• Bullish analysts have raised their price targets multiple times in recent months, citing stronger-than-expected quarterly earnings and robust recurring revenue guidance.
• Recent licensing wins, particularly new multiyear agreements with major smartphone vendors, are projected to deliver meaningful upside to both annual and quarterly recurring revenue.
• Analysts highlight that opportunities across all three business verticals—smartphones, consumer electronics, and streaming video platforms—are coming to fruition, which could drive long-term growth.
• There is growing optimism about InterDigital's ability to capture a large addressable market in streaming, viewed as a key pillar of the company's future expansion strategy and valuation potential.

Bearish Takeaways

• Some analysts maintain neutral ratings despite raising price targets, indicating reservations about the pace and sustainability of growth beyond recently signed deals.
• There is caution about the execution risks associated with expanding into newer segments such as consumer electronics and streaming platforms, which may take time to deliver material revenue.
• Expectations are tempered by the need for continued success in renewing and expanding licensing agreements, as any slowdown could impact medium-term revenue projections.
• Certain analysts note that valuation already reflects much of the recent optimism, so further upside may hinge on InterDigital’s ability to deliver sustained, repeatable success across multiple end markets.

What's in the News

• InterDigital provided new earnings guidance for Q4 and full-year 2025, with expected annual revenue of $820 million to $824 million and diluted EPS of $11.27 to $11.50. (Key Developments)
• The company repurchased 171,529 shares for $50.24 million, completing a cumulative buyback of 18.3 million shares valued at $1.23 billion since 2014. (Key Developments)
• InterDigital renewed its patent license agreement with Sharp and signed a new agreement with an EV charger manufacturer, expanding licensing in the wireless, video, and energy sectors. (Key Developments)
• The company was awarded a U.S. Department of War contract to lead research on advanced spectrum coexistence, collaborating with industry partners to advance dynamic spectrum sharing technologies for civil and military applications. (Key Developments)
• InterDigital will showcase video innovation at IBC 2025 in Amsterdam, demonstrating Versatile Video Coding (VVC) enhanced with Film Grain preservation for high-quality streaming experiences. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has risen significantly, increasing from $328.75 to $412.00.
• Discount Rate has edged up slightly, moving from 8.56% to 8.59%.
• Revenue Growth projections have declined further, shifting from -9.8% to -12.8%.
• Net Profit Margin is up modestly, improving from 29.99% to 30.38%.
• Future P/E multiple has expanded considerably, rising from 57.8x to 73.4x.