UPDATE: JP Morgan Downgrades Rovi Corporation to Neutral Following Worse-Than-Expected Guide

JP Morgan downgraded its rating on Rovi Corporation

from Overweight to Neutral and reduced its price target from $46 to $17. JP Morgan commented, "We believe the market had been anticipating the potential for a lower outlook based on reduced contribution from the Rovi entertainment storefront (RES) and royalties from consumer electronics units. The actual estimate reduction was much higher by taking out anticipated potential contracts in CE patent/product and for TV Everywhere in the service provider segment. In addition, the outlook for advertising and DivX revenue is down, tied to the lower CE units and advertising revenue from interactive TV." Rovi Coporation closed at $17.65 on Tuesday.