Immersion (IMMR – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Hamed Khorsand from BWS Financial maintained a Buy rating on the stock and has a $11.00 price target.
Hamed Khorsand has given his Buy rating due to a combination of factors including Immersion’s (IMMR) strategic investment activities and its solid financial position. Despite trading at a modest premium relative to its cash position, IMMR’s operational business is expanding, especially within the automotive sector, which is expected to increase adoption of the company’s haptic technology. The anticipated growth in haptics demand from auto manufacturers could significantly benefit the company, however, the stock’s performance may still hinge on IMMR’s skill in managing its investment portfolio.
Khorsand also highlights the firm’s recent move to invest $45 million in new shares of Barnes & Noble Education (BNED) and its commitment to backstop a rights offering for BNED. This demonstrates Immersion’s active investment strategy, potentially leading to substantial value creation. Furthermore, a notable increase in shareholder equity, as disclosed in a recent 8K filing, underscores IMMR’s strong financial health. This financial robustness, coupled with strategic investments, underpins Khorsand’s positive outlook on the stock, justifying the Buy rating with a target price set at $11.
Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IMMR in relation to earlier this year.
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Immersion (IMMR) Company Description:
Immersion Corp. engages in the creation, design, development and licensing of patented haptic innovations and software. The company offers touch sense platform and design services. It focuses on the following target application areas: mobile devices, wearable, consumer, mobile entertainment and other content, console gaming, automotive, medical, and commercial. The company was founded in 1993 and is headquartered in San Jose, CA.
