Growth Investors: Industry Analysts Just Upgraded Their InterDigital, Inc. (NASDAQ:IDCC) Revenue Forecasts By 12%

InterDigital, Inc. (NASDAQ:IDCC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. InterDigital has also found favour with investors, with the stock up an impressive 14% to US$137 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After this upgrade, InterDigital's five analysts are now forecasting revenues of US$717m in 2024. This would be a meaningful 17% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$639m in 2024. It looks like there's been a clear increase in optimism around InterDigital, given the nice increase in revenue forecasts.

Check out our latest analysis for InterDigital

Additionally, the consensus price target for InterDigital increased 12% to US$132, showing a clear increase in optimism from the analysts involved.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting InterDigital's growth to accelerate, with the forecast 38% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that InterDigital is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for InterDigital this year. Analysts also expect revenues to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at InterDigital.

Still got questions? At least one of InterDigital's five analysts has provided estimates out to 2026, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com