Freedom Capital Markets initiates Xperi stock with Buy rating, $13 target

Investing.com - Freedom Capital Markets initiated coverage on Xperi (NYSE:XPER) with a Buy rating and a $13.00 price target, implying significant upside from the current share price of approximately $6.57. This aligns with broader analyst sentiment, as InvestingPro data shows the stock is currently trading below its Fair Value, with analyst targets ranging from $9 to $13.

The research firm identifies Xperi as a differentiated media-technology platform operating in two structurally attractive markets: smart TV operating systems and in-car infotainment. With a market capitalization of $307 million and a strong gross profit margin of 75%, Xperi maintains a solid financial position, holding more cash than debt on its balance sheet according to InvestingPro analysis.

Freedom Capital Markets notes that as viewing shifts from linear TV to streaming and Advertising Video on Demand (AVOD) grows, original equipment manufacturers (OEMs) are seeking independent, white-label platforms that maintain control over user experience, data, and advertising economics.

The firm believes Xperi is well-positioned to benefit from these secular trends through its TiVo OS and TiVo One products for television, along with DTS AutoStage and HD Radio for vehicles.

According to the research note, Xperi’s growth potential stems from scaling Monthly Active Users (MAU), IPTV deployments, and direct home-screen ad sales, which are expected to drive a growing base of recurring, advertising-led revenue.

In other recent news, Xperi Inc. released its Q2 2025 earnings report, which did not meet analysts’ expectations. The company reported earnings per share of $0.11, below the forecasted $0.15. Additionally, Xperi’s revenue came in at $105.9 million, missing the expected $115.89 million. These figures reflect a decline in both earnings and revenue compared to projections. The financial results have drawn attention from investors and analysts alike. Despite the shortfall, the company remains under scrutiny for its future performance. Analyst firms have yet to provide further updates on any changes to their ratings following these earnings results. These developments highlight the current financial challenges Xperi is facing. Investors are closely monitoring the situation for any future updates or strategic adjustments by the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.