Brean Capital Reiterates Buy Rating, $15 PT on TiVo on Fiscal 4Q13 Results

In a report published Wednesday, Brean Capital reiterated its Buy rating and $15.00 price target on TiVo TIVO. Brean Capital noted, “TiVo added 209,000 new subs in F4Q13, in-line with expectations, reported Service & Technology revenue that was slightly better than guidance, and operating losses that were slightly worse, due to higher-than-expected legal expenses. Results capped off a strong fiscal year for TiVo, which added 870,000 new subs, a 38% increase, and saw Service & Technology revenue grow 24% to $235 million. Management did not address Motorola, but reiterated its prior guidance for positive adjusted EBITDA in fiscal 2014, including legal expenses which could be as high as $40 million. We believe TiVo is well positioned in these cases, and total settlement could be well in excess of $1 billion, implying significant upside to current share prices. While we see this as the key catalyst for the stock, we think that continued operating momentum, an accelerating lead over its competition in product offerings, and the opportunity to go to market more aggressively post-litigation while returning capital to shareholders, should allow the stock to retain much of the gains in a potential Motorola win.” TiVo closed on Tuesday at $12.42.