Brean Capital Reiterates Buy Rating, $14 PT on TiVo Following Solid F3Q14 Results, Little Changes in Status Quo

In a report published Wednesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating and $14.00 price target on

. In the report, Brean Capital noted, “TiVo reported solid F3Q14 results. Net adds of 274,000 for the quarter exceeded expectations, with an uptick in U.S. MSO activity making up for a negative comparison at Virgin and ONO in Europe, as expected. Top-line Service & Technology revenues of $81.7 million were at the high end of the guide, while adj. EBITDA of $23.8 million was slightly better than expected on a better-than-expected hardware gross margin and non-GAAP EPS of $0.11 was further favorably impacted by a tax benefit. However, there was no announcement on expanded distribution, and capital returns were well below expectations, which together are likely to exacerbate nagging concerns about TiVo's longer term positioning and proclivity to use its large cash position for an acquisition. As a result, we think shares are likely to trade sideways in the near-term. We are maintaining our $14 price target, and we reiterate our Buy rating, but with the caveat that we would wait for a pull-back to be more aggressive.” TiVo closed on Tuesday at $13.24.