For Immediate Release
Chicago, IL – July 19, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include TiVo Inc. (TIVO), Procter & Gamble Co. (PG), CBS Corp. (CBS), Virgin Media Inc. (VMED) and Comcast Corp. (CMCSK).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday’s Analyst Blog:
TiVo Acquires TRA, Inc.
In a deal worth $20 million TiVo Inc. (TIVO) announced the acquisition of the advertising analytics company, TRA Inc. The acquisition is expected to close this month. Following the takeover, management expects an increase in TiVo’s adjusted EBITDA for the next fiscal year.
TRA Inc. provides analytics software to advertisers and TV network operators, which correlates 1.5 million viewer’s TV viewing and their purchasing habits. Through the various analytics tools, TRA’s clients can identify their targeted audience. This would be beneficial for TiVo, as the company plans to set up another business unit called TiVo Research & Analytics after the completion of the acquisition, which would provide information to its clients about the target audience. Eventually, this would improve TiVo’s chances boost its ad revenues.
Moreover, TRA Inc.’s incremental revenue would positively impact TiVo in the long run. Also, TRA’s clientele includes in excess of 45 brand clients like Procter & Gamble Co. (PG) and Oscar Meyer and 27 network clients such as CBS Corp. (CBS), A&E Television Networks, ION Media to name a few.
We are optimistic about TiVo’s long-term growth potential due to new partnerships, product launches, international expansion and accretive acquisitions. We believe that TiVo will continue to witness strong subscriber growth based on its partnerships with Virgin Media Inc. (VMED), RCN, ONO, Charter Communications, Comcast Corp. (CMCSK), Suddenlink and DIRECTV going forward.
However, pending patent litigation issues (Verizon, Motorola and Time Warner), rising subscription acquisition costs, higher hardware and sales & marketing costs are expected to impact TiVo’s profitability over the next few quarters. Increasing competition from cable and satellite providers could also hurt profitability over the long term. Thus, we have a Neutral recommendation on TiVo over the long term (6-12 months).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: https://twitter.com/zacksresearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
More From Zacks.com