Market Overview

Craig-Hallum Bullish On Immersion's New Interim CEO

Share:
Craig-Hallum Bullish On Immersion's New Interim CEO
Related IMMR
48 Biggest Movers From Yesterday
38 Stocks Moving In Wednesday's Mid-Day Session

Haptic technology developer Immersion Corporation (NASDAQ: IMMR) is now led by a competent interim CEO who boasts the necessary experience to oversee new deals, according to Craig-Hallum Capital Group. 

The Analyst

Analyst Anthony Stoss upgraded Immersion from Hold to Buy with a price target lifted from $14 to $15.

The Thesis

Immersion's decision to name Tom Lacey as interim CEO and board member in late August is encouraging, as the executive has a long history of working with Samsung, Stoss said in the upgrade note. (See his track record here.) 

At Xperi Corp (NASDAQ: XPER), Lacey closed multiple license agreements with Samsung and built a relationship with executives at the South Korean company. He should be able to lead Immersion to close a new license deal with Samsung "sooner rather than later," Stoss said. 

"As a reminder, on a normalized basis, once IMMR has signed all the major agreements [Apple Inc. (NASDAQ: AAPL), Samsung and all of the major Chinese handset makers], we believe the company might be able to earn $1.50 in normalized ... EPS per year."  

On paper, this equates to a value of $17 per share, although a discount is warranted due to an ongoing lawsuit with Samsung, the analyst said. 

Aside from Samsung, Immersion continues to win new automotive deals — such as agreements with Stanley Electric, Calsonic and Toyodenso — which are likely heavily royalty-based, Stoss said. The royalty revenue represents only a small impact to 2019 financials, but should ramp in the following years, he said. 

Price Action

Immersion shares were rallying 13.43 percent to $11.57 at the time of publication Wednesday morning. 

Related Links:

A Peek Into The Markets: US Stock Futures Edge Higher Ahead Of Beige Book Report

6 Stocks To Watch For September 12, 2018

Latest Ratings for IMMR

DateFirmActionFromTo
Sep 2018Craig-HallumUpgradesHoldBuy
Jun 2018DoughertyDowngradesBuyNeutral
Jun 2018Craig-HallumDowngradesBuyHold

View More Analyst Ratings for IMMR
View the Latest Analyst Ratings

Posted-In: Anthony Stoss Craig-Hallum SamsungAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (AAPL + IMMR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MDRXKeyBancUpgrades0.0
ANETNomuraUpgrades260.0
CNPRBC CapitalUpgrades34.0
FISVOppenheimerUpgrades88.0
FNDUBSUpgrades37.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Railroads Have Spent A Lot Of Money The Last 10 Years, And Customers Have Barely Benefited: FTR Speaker

10 Biggest Price Target Changes For Wednesday