UPDATE: Bank of America Upgrades Tessera Technologies to Buy on Long-Term Opportunity

In a report published Friday, Bank of America analyst Krish Sankar upgraded the rating on Tessera Technologies TSRA from Underperform to Buy, and raised the price target from $14.00 to $23.00. In the report, Sankar noted, “TSRA is going through a volatile period due to the ongoing proxy battle and leadership changes. The management has reacted to some of the activist shareholder (Starboard Value) demands, and we have no insight into who will win the proxy battle. But if we take a longer term view, we believe that the shareholders should eventually benefit as the company lowers the cost, de-risks the manufacturing challenges associated with DigitalOptics segment (DoC) and returns cash to shareholders in the form of buybacks or dividends which could have a 6-8% yield (see page 3). All of this adds to an attractive set-up for the stock, in our opinion.” Tessera Technologies closed on Thursday at $18.80.