UPDATE: Clarus Securities Raises PT on Wi-LAN on Samsung Licensing Agreement Renewal
In a report published on Friday, Clarus Securities analyst Eyal Ofir raised the price target on Wi-LAN (NASDAQ: WILN) and reiterated a Buy rating.
In the report, Clarus Securities stated, "We are reiterating our BUY recommendation and raising our target price from $6.50 to $7.00 per share following the announcement that WiLAN has renewed its licensing agreement with Samsung. In our opinion, this agreement marks a major milestone for WiLAN since the prior agreement between the companies was in effect until late 2013/early 2014. The early renewal provides us with added confidence in the strength of WiLAN's wireless patent portfolio and the potential for an expanded relationship between the companies. Not only does it solidify the revenue visibility going forward, we believe that considering WiLAN's larger and broader patent portfolio and Samsung's much stronger position in the wireless handset market, the overall economics of the deal should be much higher for WiLAN and can add to 2014 growth."
Wi-LAN closed on Thursday at $4.12.
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