Brean Murray Carret Reiterates Buy, $41 Target on Rovi

Brean Murray Carret maintains its Buy rating and $41 target price on Rovi (NASDAQ: ROVI) as it believes investors now see the company in a more constructive light.

Brean Murray Carret says, "Investors have high visibility on double-digit growth in Service Provider revenues, and Consumer Software should begin to benefit in 2H12 from the build-out of RES storefronts, with a nice feedback look to Divx. That leaves TOtal Guide CE IPG and IPG Advertising, and neither requires any herculean assumptions to get to an EPS growth rate of 15% in 2013 and 2014, before any sort of debt repayment of share buyback, which we think should support a 15.0x multiple and $40+ share price."

ROVI closed at $33.06 a share on Friday.