InterDigital, a developer of wireless and video technologies, is the IBD Stock Of The Day for Thursday. IDCC stock is flirting with a buy point after the company's recent analyst day.
At its Sept. 10 investor day, the Wilmington, Del.-based research and development company outlined its growth strategy and the opportunities ahead. It set targets of $1 billion in annual recurring revenue and $600 million in adjusted earnings by 2030.
"In the past four years, we have almost doubled our revenue, improved our execution across the business, and taken multiple steps to enhance shareholder value," Chief Executive Liren Chen said in a news release.
He added, "Based on our world-class innovation in wireless, video and AI, accelerating momentum across the business, the large addressable markets available to us, and new greenfield opportunities, we believe we are perfectly positioned to deliver significant growth in revenue and profitability in coming years."
IDCC Stock In Flat Base
InterDigital has a portfolio of more than 32,000 patents in wireless, video and artificial intelligence. Its technologies are in smartphones, consumer electronics, automobiles and streaming video services. The company's portfolio has been growing by about five new patents a day.
Top InterDigital customers include Apple, Samsung and Xiaomi.
On the stock market today, IDCC stock rose 1.2% to close at 138.45.
According to IBD MarketSurge charts, IDCC stock is in a flat base with a buy point of 140.60. It has been flirting with that buy point for the past five trading sessions.
In intraday trades on Monday, InterDigital stock notched a record high of 141.
'Powerful Business Model'
William Blair analyst Arjun Bhatia said InterDigital has "a powerful business model with research at its core."
The smartphone market provides the majority of InterDigital's revenue today, but the company is working to grow more in the consumer electronics and streaming video markets, Bhatia said.
Bhatia rates IDCC stock as outperform.
"The stock is attractive given the upside potential from new and expanding partnerships in the smartphone market, the medium-term opportunity in consumer electronics, and the long-term opportunity to license to cloud service providers," Bhatia said in a Sept. 11 client note.
IDCC stock is on the IBD Tech Leaders list.
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