In a research note issued Thursday, Rosenblatt analysts confirmed their Buy rating on Adeia Inc. and set a price target of $15 per share. They described it as “the most undervalued AI play in the market.”
Rosenblatt uses meetings with Adeia’s CEO, CFO, and VP IR to illustrate the company’s “under the radar” status despite its leadership in key AI growth areas.
According to Rosenblatt, semiconductors present a tremendous opportunity as transistor limits push Moore’s Law to its end.
“Adeia’s hybrid bonding and chiplet IP offer a solution” to these issues, the company claims. In media, Rosenblatt regards Adeia as “the leader in digital entertainment IP,” well-positioned for the continuous development of video across devices.
Financially, Rosenblatt is delighted with Adeia’s “60+% operating margin” and valuation. Trading at “8x forward EPS,” Rosenblatt recommends investors to investigate more into Adeia, indicating tremendous upside potential.
“We feel Adeia has the most undervalued AI play in the market,” the analysts stated.” “We recommend investors take a deeper look at the company.”
