Post-call: Canaccord reaffirms $2.50 2023 target and HOLD Updated model...
Cuts ITS multiple from 12X to a generous 10.5X. ITS worth $2.17 per share. Notes the multiple compression in the industry.
Cash, net of debt and Apple proceeds is 0.49/share.
WiLan worth 0.82 per share.
Corporate a (0.92) per share drag.
......
So you see the puts and takes here? They get a $2.50 price target after:
1. Sell WiLan for 3X the price per patent of Blackberry
2. And turn around the ITS business from $1M EBITDA a qtr to $6M a qtr
Together that gets you back to $2.50/share at the end of 2023.
Quite the meager return for so much execution risk.
That's why there is someone selling at any sign of a bid on the stock. The slow motion crash continues.