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.
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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. 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.
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This article is originally published at Insider Monkey.
