Brean Capital Reiterates Buy Rating on TiVo (TIVO) Ahead of F1Q16 Results

Brean Capital reiterates a Buy rating and $14 price target on TiVo (NASDAQ: TIVO) leading up to F1Q16 results. Analyst Todd Mitchell believes that TiVo will put up solid results, and continue trends throughout F2016. TiVo is scheduled to release its F1Q16 results on May 26th, after market close.

Mitchell commented on TiVo, saying, "We see value in TIVO despite the lack of a clear catalyst for upside. We think TiVo will put up solid results in F1Q16, and that it can maintain these trends throughout F2016, even if customer consolidation and increased competition has cast a pall over TiVo’s terminal value, which has yet to be addressed by its efforts to diversify towards new models of horizontal technology integration. We are trimming our F1Q16 and F2016 net add forecast modestly, but we continue to think TiVo will add over 250,000 new subs in F1Q16, and over 1 million new subs in F2016, and we note that TiVo has opened up new means to grow its sub base in F2017 with expansion of licensing deals in North America and Europe. Moreover, we expect double-digit revenue and adjusted EBITDA growth in F2016, if not F1Q16, due to a tough comparison in Technology revenues, and that with an aggressive buyback, this should translate to a significant increase in non-GAAP EPS in F2016, while leaving TiVo with over $5 per share in cash. All of which we believe argues for upside to current share prices. As a result, we reiterate our Buy rating and $14 target price."

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 $10.66 yesterday.

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