Adeia (ADEA – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Matthew Galinko from Maxim Group remains neutral on the stock and has a $14.00 price target.
Matthew Galinko has given his Buy rating due to a combination of factors. One of the key reasons is Adeia’s solid third-quarter performance which exceeded expectations. The company reported revenue of $101.4 million, surpassing both Maxim Group’s estimate of $95.3 million, and the consensus of $90.8 million. Moreover, the adjusted EBITDA of $68.8 million also beat the estimated $56.9 million as well as the consensus of $54.7 million. This strong performance was largely driven by higher revenue and more efficient operating costs.
In addition to the robust financial performance, Galinko is optimistic about Adeia’s future prospects. Despite lowering the 2023 revenue guidance slightly, Adeia’s management has indicated a promising outlook for 2024 with a projected low-to-mid single-digit revenue growth. Furthermore, the company has consistently been successful in securing license renewals, suggesting stability in its operations. Also noteworthy is Adeia’s significant growth opportunities in media and semiconductor patent portfolios, which could lead to further expansion. The company also has a solid financial base with $82.1 million in cash and investments, and an adjusted EBITDA margin of 66.4% expected for 2023. These factors, coupled with the stock’s attractive EV/2023 EBITDA multiple of 5.8x, have contributed to Galinko’s Buy rating for Adeia.
Galinko covers the Technology sector, focusing on stocks such as WISeKey International Holding, American Software, and Adeia. According to TipRanks, Galinko has an average return of -21.7% and a 25.71% success rate on recommended stocks.
In another report released yesterday, BWS Financial also maintained a Buy rating on the stock with a $16.00 price target.
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Adeia (ADEA) Company Description:
Xperi Corp. engages in creating, developing and licensing audio, imaging, semiconductor packaging and interconnect technologies. It operates through the following two segments: Product Licensing and Semiconductor & IP Licensing. The Product Licensing segment comprises of audio and imaging businesses, which licenses through the DTS, FotoNation, HD Radio, and IMAX Enhanced brands. The Semiconductor & IP Licensing segment licenses semiconductor packaging and interconnects technologies and associated intellectual property. The company was founded in 1990 and is headquartered in San Jose, CA.
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