UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Rovi Corporation
In a report published Friday, J.P. Morgan & Co. reiterated its Neutral rating on Rovi Corporation (NASDAQ: ROVI), and slightly raised its price target from $19.00 to $20.00.
J.P. Morgan noted, “In what we believe is a positive strategic move, the company is placing the Rovi Entertainment Storefront (RES) up for sale ahead of their analyst day next week on 1/9. This business that came with the acquisition of Sonic Solutions has had a questionable growth outlook and has been a drag on margins. Company also updated the full year 2012 outlook assuming RES is in discontinued operations; net of RES, revenue appears to be in the lower half of the guidance range while EPS is in the upper end of the guidance range, so we are adjusting our model.”
Rovi Corporation closed on Thursday at $15.85.
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