Goldman Sachs Initiates Coverage On RPX Corp.

Goldman Sachs is initiating coverage on RPX Corp RPXC with a Neutral rating and a $30 price target. In a note to clients, Goldman Sachs writes, "We initiate coverage on RPX with a Neutral rating and $30, 12-month price target, implying 40X 2012E EPS of $0.75. RPX offers unique subscription-based defense from patent assertions by non-practicing entities (NPEs) against commercial users and creators of technology. We see RPX moving from 81 clients to nearly 200 in 2013, supporting revenue and EPS CAGRs of 30% and 40%. We could become more constructive on visibility into a high number of successful renewals (23 pending in 2012, vs. 8 to date) and business model extensions; longer term, shares should appreciate in line with earnings growth given addressable market dynamics." Shares of RPXC closed at $31.00 on Friday.