Rosenblatt analyst Steven Frankel initiated coverage of Xperi (XPER) with a Buy rating and $15 price target. Xperi trades at a valuation 17% below the level at which the spinoff occurred, notes the firm, which likes “both the management team and strategy.” Two early wins for TiVO OS are an important validation of the company’s strategy, notes the firm, which adds that the current valuation level is “significantly below” where Dolby (DLB) trades. The discount is warranted given Dolby’s scale, superior margins and cash flow, but as Xperi scales it would expect the discount to narrow over time, Rosenblatt added.
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