Rovi (ROVI) Sell-Off Unwarranted, Brean Capital Says

Brean Capital analyst Tod Mitchell reiterated a Buy rating and $27 price target on Rovi Corp. (NASDAQ: ROVI) saying the sell-off is unwarranted.

Mitchell comments, "While disappointing in so much as it removed an avenue for fast tracking a settlement with Amazon, we believe Rovi‘s appeals court loss to Amazon (AMZN, NR, $327.07) yesterday 1) does not close the door to further claims against Amazon, 2) does not set a negative precedent for further claims against other over-the-top (OTT) service providers, and 3) contains no negative implication on the company’s ability to negotiate upcoming renewals with major U.S. MSO. As such, we believe yesterday’s strong retrenchment of the stock, after already lagging the market in 1Q14, presents investors with an opportunity. We reiterate our Buy rating and $27 price target."

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

Shares of Rovi Corp. closed at $20.50 yesterday.

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