Wi-LAN Inc. stock jumped 16 per cent yesterday after CIBC World Markets, which initiated coverage of the wireless equipment maker, came out with a 12-month target price of $200 a share.
The stock rose $10 to $71.95 on the Toronto Stock Exchange, where earlier this month shares hit a 52-week high of $87.50.
Todd Coupland, an analyst with Toronto-based CIBC, initiated his coverage with a "speculative strong buy" recommendation, based on what he calls the "explosion in wireless data" and Calgary-based Wi-LAN's intellectual property for high-speed wireless equipment.
"We believe that Wi-LAN's management team will be able to nearly quadruple revenue during 2000 and in 2001," Mr. Coupland said in a research report released yesterday. He estimated revenue in 2000 and 2001 to be $21-million and $80-million, respectively.
"The company's strong management team, technological leadership and market positioning all support a very strong growth profile over the next three to five years," he said.
Wi-LAN holds a patent on W-OFDM, or wideband orthogonal frequency division multiplexing, a technology for high-speed wireless communications. The company is trying to make its technology a global standard for the development of next-generation wireless equipment.
On Tuesday, Wi-LAN announced that Microsoft Corp. had endorsed the creation of an OFDM standard. The same day, Wi-LAN, Nokia Corp., L.M. Ericsson Telephone Co. Inc., Philips Electronics NV, Sony Corp. and other high-tech leaders announced from San Francisco the creation of an OFDM Forum to support that standard.