Adeia Inc. (ADEA) Rated as a Buy at Roth/MKM with a $26 Price Target

Adeia Inc. (NASDAQ:ADEA) is one of the 15 successful spin-off companies. On June 20, Roth/MKM initiated coverage of the stock with a ‘Buy’ rating and a $26 price target. The bullish stance underscores the research firm’s confidence in the company’s intellectual property portfolio and growth prospects.

Adeia Inc. (ADEA) Rated as a Buy at Roth/MKM with a $26 Price Target

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Roth/MKM has reiterated that Adeia is a leading developer and licensor of intellectual property for the media and semiconductor market. It has echoed its business model, which generates over 85% of its sales in recurring revenue.

The research firm expects the company to generate significant sales as over-the-top media services and next-generation semiconductor hybrid bonding solutions become widely licensed. It also expects company growth to be driven by the penetration of next-generation artificial intelligence in 2026 and beyond.

Adeia Inc. (NASDAQ:ADEA) was formerly part of Xperi Holding. It came into being following the spin-off of the IP licensing business. It specializes in the development and licensing of foundational innovations, particularly in the media, entertainment, and semiconductor industries.

While we acknowledge the potential of Adeia Inc. (NASDAQ:ADEA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADEA and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.