Macquarie Starts TiVo (TIVO) at Outperform

Macquarie initiates coverage on TiVo (NASDAQ: TIVO) with a Outperform rating and a price target of $15.00.

Analyst Andrew DeGasperi commented, "TIVO shares are significantly below our US$15 SoTP analysis: 1) 4x FY16 MSO revenues or ~US250m; 2) 2.5x retail sales of ~US$170m; 3) 1.5x hardware revenues or ~US$140m; and 4) US$600m for the stream of royalty payments."

He added, "We think multiples will expand and reflect the company’s positioning in an unbundling world, transition to a more software-centric business model and generous US$300m in buybacks. Importantly, a potential falloff in royalty fees in CY2018 will likely be surpassed by a sizeable and growing MSO business."

For an analyst ratings summary and ratings history on TiVo click here. For more ratings news on TiVo click here.

Shares of TiVo closed at $10.47 yesterday.

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