Maxim Group analyst Matthew Galinko has maintained their bullish stance on XPER stock, giving a Buy rating yesterday.
Matthew Galinko has given Xperi Inc. a Buy rating due to a combination of factors. Xperi’s strong performance in the third quarter of 2023 has showcased its robustness, generating revenue of $130.4 million and adjusted EBITDA of $9.3 million, which both exceeded expectations. All of Xperi’s segments outperformed revenue estimates, with pay TV and the media platform being the most valuable. The company’s recent activities, including collaborations with the fourth and fifth original equipment manufacturers (OEMs) and a new automotive win for 2025 model year vehicles, further strengthen its position.
In addition, Xperi’s financial position is sound, ending the third quarter with $131.5 million in cash and investments and $50 million in debt. The company’s net cash improved by about $19 million sequentially, and based on estimates, it is expected to start generating cash flow in 2024. It’s noteworthy that Xperi’s shares trade at an EV/EBITDA multiple of 4.8x, which is significantly lower than the peer group average of 17.0x. This, coupled with the maintenance of a Buy rating and $18 price target based on 12.5x the new 2024 adjusted EBITDA estimate, indicates promising investment prospects.
In another report released yesterday, BWS Financial also maintained a Buy rating on the stock with a $30.00 price target.
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Xperi Inc (XPER) Company Description:
Xperi Inc invents, develops, and delivers technologies that enable experiences. In the home, in the car, and on the go, it manages content and connections. Its offering comprises a portfolio of software and services. Its business is divided into four categories based on the products delivered and customers served: Pay-TV, Consumer Electronics, Connected Car, and Platform Solutions.
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