Brean Capital Believes TiVo Is On The Verge Of Strong Value Creation

Dwight Einhorn

In a report published Friday, Brean Capital analyst Todd Mitchell reiterated a Buy rating and $16.00 price target on TiVo (NASDAQ: TIVO).

In the report, Brean Capital noted, “We believe TiVo is on the verge of strong value creation. TiVo reported better than expected F1Q15 results, with upside to net adds driven by strong growth in domestic MSO and better-than-expected O&O trends, with the latter accompanied by record low SAC, for upside to adjusted EBITDA.

"We expect current trends to continue through the remainder of fiscal 2015, as TiVo's value proposition is resonating with its core customer base who are facing an increasingly challenging competitive dynamic and accelerating investment in their service profile. We also believe the acquisition of DigitalSmiths and recent investment in TiVo's measurement and analytics business offers creates a strategic growth opportunity on top of TiVo's core business.

"With a strong, and comprehensive, and proven, value proposition for operators wishing to enhance their service profile, we believe this will lead to the announcement of new distribution over the coming months, driving upside to current share prices. We reiterate our Buy rating and $16 target price.”

TiVo closed on Thursday at $11.93.

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