UPDATE: Brean Capital Reiterates Buy Rating, Raises PT on TiVo as Company Finds its Stride

In a report published Thursday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on TiVo TIVO, and raised the price target from $15.00 to $16.00. In the report, Brean Capital noted, “TiVo reported better than expected sub growth, driven by its first quarter of positive O&O net adds in six years and an increasingly diversified licensed sub base. Subscriber gains underpinned a 28% increase in F4Q14 Service & Technology revenue to $84 million, adj. EBITDA of $19.6 million, and non-GAAP EPS of $0.01, and put TiVo on track to deliver over $100 million in adj EBITDA in fiscal 2015. Results were driven by strong demand for TiVo's new Roamio and an increasingly diverse licensed sub base. We believe the acquisition of Digitalsmiths and TiVo's recent digital terminal adapter (DTA) deal with Vyve Broadband represent an opening of TiVo's business model, disaggregate its integrated offering, and allowing it to offer single components, which we believe will allow it to target a broader customer base. We see this as a positive development. As a result, we are raising our price target to $16 from $15 and we reiterate our Buy rating.” TiVo closed on Wednesday at $12.83.