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Jefferies On TiVo: 'Significant Potential' For Share Count Reduction By 2017


Following TiVo Inc.'s (NASDAQ: TIVO) third-quarter results on Tuesday, Brian Fitzgerald of Jefferies reiterated shares with a Buy rating while raising his price target to $18 from a previous $16.

“Importantly, we see a significant potential for meaningful share count reduction given management commentary around the aggressive buybacks,” Fitzgerald wrote. “The company could buy back roughly a third of its shares by Fiscal 2017 year-end (January 2017).”

TiVo announced a $350 million share repurchase plan in August while the company issued a $230 million convert with a hedge and warrants in September. Fitzgerald notes that the company repurchased 9.9 million shares for $128 million in the recent quarter.

Accordingly, Fitzgerald is now lowering his fiscal 2017 diluted share count by about 25 percent to 96 million, which increases the company's earnings per share.

The analyst also notes that TiVo's “revitalized” retail outlook is driven by hit products like Roamio. TiVo-owned gross additions were 9 percent higher year-over-year and net additions were positive in October for the first time in seven years.

Latest Ratings for TIVO

Aug 2018MaintainsBuyBuy
Aug 2018MaintainsOverweightOverweight
Feb 2018MaintainsNeutralNeutral

View More Analyst Ratings for TIVO
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Posted-In: Brian Fitzgerald Roamio tivoAnalyst Color Price Target Analyst Ratings


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