BofA Securities analysts downgraded InterDigital (NASDAQ:IDCC) to Underperform from Buy and slashed the price target to $100 from $140. The company’s shares plunged more than 8% intra-day today.

The bank noted that InterDigital's shares have surged by 47% over the past year, largely due to consecutive quarters of strong growth fueled by new licensing deals with Lenovo, Panasonic, and others. This growth was also significantly boosted by a 162% year-over-year increase in non-recurring revenues, which mainly consist of one-time catch-up payments.

However, looking ahead, the bank raises concerns about the company's growth projections for 2024 and anticipates negative growth rates in 2025. The analysts emphasized that while the company reported a 20% revenue increase in 2023, this figure falls to a mere 1% year-over-year growth when excluding one-time, non-recurring revenues.