Brean Capital Reiterates Buy Rating, $15 PT on TiVo Ahead of Fiscal 4Q13 Results

In a report published Monday, Brean Capital reiterated its Buy rating and $15.00 price target on TiVo

. Brean Capital noted, “Looking for settlements to cement upside to current valuation. TiVo will report fiscal 4Q13 results on Tuesday, February 26th after the close. Potential settlement of TiVo's claims against Motorola remains the key catalyst for the stock, and all else is secondary. We believe that TiVo is well positioned in this case, and its related claims against Cisco (CSCO, $20.90, Not Rated) and Time Warner Cable (TWC, $86.39, Hold), and that the aggregate value of a settlement in these cases could be over $1 billion. However, we also note that fiscal 4Q13 caps off a year in which TiVo has been able to execute a strong turnaround in operating momentum. We believe TiVo has a strong offering for a MSO wishing to deploy TV Everywhere, and that resolution of its claims against Motorola and Cisco will provide TiVo with the resources and freedom to go after new business, particularly with larger MSO, more aggressively. We look for evidence of increased operating momentum to help shares of TiVo to retain the value of litigation wins.” TiVo closed on Friday at $12.93.