UPDATE: Evercore Partners Upgrades TiVo to Overweight

Evercore Partners has published a research report on TiVo (NASDAQ: TIVO) and has upgraded the company from Equal-weight to Overweight.

In the report, Evercore Partners writes, "We now value TiVo's cash, financial assets, and its current operations at $10 per share, close to its after-market price, implying one is receiving a free option on the VZ lawsuit, signing up TWC and other global multi-channel operators. Accordingly, we are raising our rating to Overweight from Equal-Weight and our price target to $12 from $11. The $215 million is a minimum guaranteed payment to TiVo based on a monthly fee using a low-growth AT&T DVR model. TiVo stated that based on current industry estimates it expects total fees should significantly exceed the $215 million. Assuming $0.75-$1.00 per sub per month, and AT&T subs grow from an estimated 3.8 million presently to 7.8 million by mid-2018, the total payment to TiVo could be $275-$350 million. We had been modeling $105 million for AT&T, which included a discount for legal uncertainty."

Evercore Partners has also raised the price target from $11 to $12 on TiVo, which closed yesterday at $8.92.