UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on Rovi Corporation

In a report published Friday, Goldman Sachs Group reiterated its Neutral rating on Rovi Corporation (NASDAQ: ROVI), and slightly raised its price target from $16.00 to $17.00.

Goldman Sachs noted, “After the market close on January 3, the company announced its intention to sell the Rovi Entertainment Store business (RES) as part of its strategy to focus on its core service provider and consumer electronics (CE) businesses. As a result, the segment's operating results will be reclassified as discontinued operations. Management provided historical F1Q12-3Q12 financials as well as updated FY12 guidance reflecting the reclassification. FY12 revenue and non-GAAP EPS are guided to $645-650mn and $2.05-2.10. Per Rovi, this compares to an outlook of $645-655mn and $2.00-2.10 had the re-class occurred when it provided FY12 guidance on November 1, 2012.”

Rovi Corporation closed on Thursday at $15.85.

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