TIVO’s Partnership with Virgin Media in the UK Highly Meaningful

Analysts at Craig Hallium Capital Group reiterated their “buy” rating for TiVo Inc (NYSE: TIVO). The target price for TIVO is set to $15.

Although TIVO posted a 12% y/y decline in its revenues for Q3, they were well ahead of the estimates. Similarly, TIVO’s EBITDA and GAAP EPS were better than the estimates, despite a $1.8 million charge related to subscription over-reporting by DIRECTV. With Virgin having a video-based subscriber base of 4 million, Craig Hallium Capital Group believes that TIVO’s partnership with Virgin Media in the UK will be meaningful.

The partnership has expanded TiVo’s international footprint and effectively places it in the UK market. Craig Hallium Capital Group believes that TIVO’s share price does not sufficiently reflect the company’s strategic positioning, the potential of the under-monetized brand and the magnitude of the change to TiVo’s technology IP.