UPDATE: JP Morgan Upgrades TiVo to Overweight on Catalysts Ahead

JP Morgan upgraded its rating on TiVo

from Neutral to Overweight with a reiterated price target at $13 a share. JP Morgan noted, "MSO adoption of TiVo's advanced TV solutions has rekindled subscriber growth, after a 4-year hiatus, putting the company back on the path to achieve EBITDA profitability in 2013. TIVO stock is currently trading at a somewhat-depressed EV/Sale multiple largely owing to temporarily elevated R&D and litigation expense, but we believe shareholders are somewhat protected from downside by net cash of just over $3.00 and a core MSO business that we value at between $3.00 and $7.00 per share. We expect several positive developments in coming months, starting with a favorable outcome in the October patent infringement trial against Verizon, followed by a significant drop in litigation expense and moderating R&D that should provide better visibility into future earnings power." TiVo closed at $9.09 on Friday.