B. Riley Gives a Buy Rating to Immersion Corp

By Carrie Williams

B. Riley analyst Josh Nichols assigned a Buy rating to Immersion Corp (NASDAQ: IMMR) today and set a price target of $9.75. The company’s shares closed on Friday at $8.25.

Nichols wrote:

“We model Q3 revenue and EBITDA of $7.3MM and $(9.6MM), in line with consensus revenue but below consensus EBITDA of $(8.5MM), respectively. We believe near-term operations likely remained challenging after the $8MM cut to 2017 revenue guidance last quarter (now $30MM-$34MM) after an unfavorable arbitration decision with Sony (U.S.) regarding the sale of DS4 wireless controllers. Recall, IMMR already has a full plate now that it has filed complaints against Apple (AAPL), Samsung, Motorola, and Fitbit (FIT), which will require a significant amount of capital ($21MM-$24MM of anticipated litigation spend this year—largely 1H weighted) and management time. However, management is confident it has the wherewithal to pursue multiple alleged infringers.”

According to TipRanks.com, Nichols is a 4-star analyst with an average return of 65.6% and a 62.5% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Pointer Telocation Ltd, Kemet Corp, and Numerex.

Immersion Corp has an analyst consensus of Moderate Buy, with a price target consensus of $11.

The company has a one-year high of $11.92 and a one-year low of $6.22. Currently, Immersion Corp has an average volume of 195.8K.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Immersion Corp. engages in the creation, design, development and licensing of patented haptic innovations and software. The firm offers touch sense platform and design services. It focuses on the following target application areas: mobile devices, wearable, consumer, mobile entertainment and other content, console gaming, automotive, medical, and commercial.