Brean Murray Carret Remains Bullish on Tivo (TIVO), Sees AT&T (T) Case Setting Guidlines for Verizon (VZ) Case

Brean Murray Carret & Co. is reaffirming its Buy rating and $14 price target on shares of TiVo (NASDAQ: TIVO) following the settlement agreement with AT&T (NYSE: T).

The firm states the settlement raises the value of the company's IP position and enhances the likelihood of a settlement in the Verizon (NYSE: VZ) case. Brean Murray Carret also notes the recent wins against DISH (Nasdaq: DISH) and AT&T increase the possibility of potential claims against Time Warner Cable (NYSE: TWC). If claims were brought against TWC, the settlement would be much larger than the AT&T settlement due to bigger subscriber base.

Brean Murray Carret now believes Tivo's service and technology revenue in fiscal 2013 will be able to exceed $200 million while its adjusted EBITDA should be able to top breakeven.

An analyst at Brean Murray Carret comments, "We look for another sequential jump in licensed sub growth in fiscal Q412, driven by continued strong trends at Virgin (Nasdaq: VMED), RCN multi-room deployments, and ONO and Charter (Nasdaq: CHTR) coming online."

For FY12 and FY13, the firm increased its EPS estimates from $0.49 and ($0.39) to $0.60 and ($0.28). Sales for FY12 and FY13 are forecasted to total $239.24 million and $279.89 million.

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 $8.92 yesterday.

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