Morgan Stanley Sees Toshiba/Sandisk Exclusivity as Positive for Intermolecular

In a report published Tuesday, Morgan Stanley analyst Joseph Moore reiterated an Equal-Weight rating on Intermolecular IMI. In the report, Morgan Stanley noted, “We believe the lost SNDK/Toshiba development revenues were about $7 mm per year, which we had already taken out of our model. As part of this agreement, Sandisk and Toshiba will pay a few hundred thousand dollars per quarter, which is upside. This is basically a prepayment for volume based royalties, which we don't expect until 2017 or so. Longer term, the ReRAM royalty stream should be substantial, though the terms have not been made specific.” Intermolecular closed on Monday at $3.16.