UPDATE: Brean Capital Reiterates SeaChange International at Buy on Strategic Value

Brean Capital maintained its Buy rating and $11 price target on SeaChange International

as it believes the company's leadership position makes it an attractive takeover target. Brean Capital noted, "The investment case for SEAC lies in 1) the successful repositioning of SeaChange by new management as a pure software play with leading positions in key areas for the shift to TV Everywhere, 2) an upcoming catalyst in fiscal 4Q13 in the form of accelerated growth and margin expansion as revenue recognition begins to kick-in for SeaChange's next-gen Adrenalin VOD-back office platform with a couple of large U.S. MSO customers, and 3) our belief that because of SeaChange's leading position in key areas of MSO investment, it is not likely to remain an independent company in an industry consolidation scenario. At current levels, we believe SEAC is trading at a significant discount to intrinsic value, and an even greater discount to its strategic value." SeaChange International closed at $9.25 on Friday.