UPDATE: BMO Capital Markets Reiterates on Rovi on 3Q13 Revenue Report

In a report published Thursday, BMO Capital Markets analyst Edward S. Williams reiterated a Market Perform rating on Rovi ROVI, but lowered the price target from $24.00 to $20.00. In the report, BMO Capital Markets noted, “Rovi reported 3Q13 revenue of $143 million and non-GAAP EPS of $0.41 versus $164 million and $0.56 a year ago. Our revenue and EPS estimates were $157 million and $0.55, respectively, while consensus estimates were $152 million and $0.48. Following the sale of the Rovi Entertainment Store and Consumer Website business, the company is undergoing a strategic review of its DivX business (including a potential sale) as it narrows it focus on key growth opportunities. The company also lowered guidance for 2013, reflecting continued uncertainty around the timing of when new agreements under negotiations could be completed.” Rovi closed on Wednesday at $18.97.