Immersion (IMMR) is a Buy on Apple-Related Sell-Off, Feltl & Co Says

Feltl & Co analyst Jeffrey Schreiner reiterated a Buy rating and $12 price target on Immersion (NASDAQ: IMMR), saying he believes the recent sell-off in the stock was related to speculative investors selling after the company's haptics software was not included in recently released Apple products. He sees the sell-off as a long-term buying opportunity.

Schreiner highlights the signed LG contract and said it more than likely offers improved pricing in 2H14/CY15. "We believe renegotiation may have allowed IMMR to increase its per unit royalty by ~50%, but less than the ~100% it was originally seeking," he said. "We believe with LG license complete IMMR is poised to deliver CY14 revenues near high-end of guidance range," he added.

On Apple, he noted that Immersion sees Apple’s Taptic Engine as positive for future licensing opportunities. They are looking to engage AAPL in licensing negotiations, but future IP issues could arise. The company believes AAPL use of tactile feedback should be positive for future licensing opportunities as companies tend to emulate AAPL. The company also believes its patents have solid footing in AAPL's applications, but would like to pursue a licensing deal first before potential future litigation.

For an analyst ratings summary and ratings history on Immersion click here. For more ratings news on Immersion click here.

Shares of Immersion closed at $9.03 yesterday.

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