Rosenblatt analysts reiterated a Buy rating on Adeia Inc. in a research note Thursday, with a price target of $15 per share. They called it "the most undervalued AI play in the market."
Citing meetings with Adeia's CEO, CFO, and VP IR, Rosenblatt highlights the company's "under the radar" status despite its leadership in key AI growth areas.
Semiconductors, where transistor limitations are pushing Moore's Law to its end, present a significant opportunity according to Rosenblatt.
"Adeia's hybrid bonding and chiplet IP offer a solution" to these challenges, the firm states. In media, Rosenblatt sees Adeia as "the leader in digital entertainment IP," well-positioned for the continued rise of video across devices.
Financially, Rosenblatt is impressed by Adeia's "60+% operating margin" and its valuation. Trading at "8x forward EPS," Rosenblatt encourages investors to take a deeper look at the company, suggesting significant upside potential for Adeia.
"We view Adeia has the most undervalued AI play in the market," they declared. "We recommend investors take a deeper look at the company."