Barclays Starts InterDigital Inc. (IDCC) at Overweight; Monetizing Wireless Innovation

Barclays initiates coverage on InterDigital Inc. (NASDAQ: IDCC) with a Overweight. PT $56.

Barclays analyst says, "The company is well positioned to capitalize on mass market adoption of 3G devices as well as the transition to 4G through the licensing of its standards based IP portfolio. As this summer's Nortel auction is likely to heighten focus on wireless IP as a vital and differentiating asset, we consider InterDigital a leading play in the industry."

"Our 2011 and 2012 EPS estimates of $2.24 and $2.40 exclude benefits of the LG renewal. LG could add another $0.70-$0.80 per year. Our price target of $56 equates to ~14x our 2012 LG adjusted EPS estimate of ~$3.16 plus ~$12 a share in net cash, and is supported by our SoTP analysis. Given potential upside from current levels, we initiate with an OW."

For more ratings news on InterDigital Inc. click here and for the rating history of InterDigital Inc. click here.

Shares of InterDigital Inc. closed at $46.19 yesterday.

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