UPDATE - UBS Initiates Coverage on TiVo (TIVO) with a Buy; Distribution Deals Driving Sub Growth

UPDATE - UBS initiates coverage on TiVo (NASDAQ: TIVO) with a Buy. PT $13.00.

UBS analyst said, "We launch coverage on TIVO with a Buy rating as new distribution deals with big cable operators reversed four years of sub declines in 3Q, a significant inflection point in our view. We believe sub gains should persist in coming qtrs as penetration is ramping fast on current deals, and we think new deals are likely as operators look to rapidly deploy broadband enabled set-top boxes after witnessing competitors’ success with TIVO. Declines in the retail biz are moderating, but we remain vigilant as the disruptive video landscape continues to rapidly evolve."

"Potential Upside from Enforcement of Patents: We see upside as TIVO enforces its portfolio of 565 patents (including applications). EchoStar /
DISH settled for ~$600MM in May, a ~10x return on litigation expense. As TIVO defends its battle-tested portfolio, we are optimistic in add’l positive settlements."

To see more ratings on TIVO, Click Here

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