Rosenblatt on Tuesday raised its 12-month price target for Adeia Inc. (NASDAQ: ADEA) to $30 from $20 while maintaining a Buy rating, pointing to the company’s record quarterly revenue and its successful defense in a patent suit with Disney. The stock was trading near $18.48, which Rosenblatt and other valuation measures suggest leaves material upside to both the analyst target and InvestingPro’s Fair Value estimate of $22.10.
Adeia closed 2025 with record quarterly and annual revenue and profits, milestones the firm tied directly to the favorable litigation outcome with Disney. Company guidance for 2026, taken at the midpoint, implies roughly 15% year-over-year revenue growth when the analysis excludes a nonrecurring payment connected to the Disney litigation.
On valuation metrics, the stock presents a low PEG ratio of 0.37 alongside a free cash flow yield of 10%, metrics highlighted in InvestingPro Tips as indicators of attractive value relative to the company’s growth profile. Those measures were flagged as part of the rationale for the higher price target.
Rosenblatt and company commentary both emphasize a shifting revenue mix. Pay-TV related revenue is now expected to account for 35% to 40% of total 2026 revenue, down from about 60% in prior years. The long-term decline in Pay-TV subscribers has weighed on growth historically, but Rosenblatt sees that headwind easing.
The firm also pointed to expanding intellectual property prospects across Adeia’s Media and Semiconductors segments. Improving free cash flow has given Adeia flexibility on the capital allocation front; management has used stronger cash generation to reduce debt levels, execute share repurchases, support a dividend and pursue acquisitions.
Rosenblatt said these developments informed its decision to lift the 12-month price target to $30, reflecting what the firm described as improved financial performance and a more constructive growth outlook.
In additional corporate updates, Adeia reported strong fourth-quarter 2025 results with both revenue and earnings per share materially above analysts’ expectations. The company attributed the outperformance to record license agreements and strategic expansions in its media and semiconductor businesses. Despite the better-than-expected quarterly numbers, the stock experienced a small decline in aftermarket trading.
Company executives and analysts pointed to the results and strategic moves as evidence that Adeia is strengthening its position in key markets. The earnings report was cited as reinforcing the company’s financial health and keeping Adeia’s performance under close watch from investors and industry analysts.
Note: The article reflects the company figures, analyst actions and outcomes as stated in company and analyst commentary.