UPDATE: Brean Capital Reiterates Buy Rating, Lowers PT on TiVo Following KDG Loss

In a report published Friday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on

, but lowered the price target from $16.00 to $14.00. In the report, Brean Capital noted, “We think TiVo prospects have dimmed as a result of the KDG loss. TiVo is an outsourced TV Everywhere (TVE) solution provider. TiVo has the largest up and running TVE deployments in Europe on Virgin, ONO, and Con Hem, and is the default solution for tier-2 U.S. operators. We believe shares of TIVO will benefit in 2015 from current levels due to continued strong deployments of its customer base, growth in Digitalsmiths customers and revenue, potential new distribution in Europe and/or Latin American, and an aggressive capital return program. Nevertheless, with the prospects of a vertically integrated TVE deal with a large European operator fading, we are lowering our terminal sub base projection. As a result, given our dependence on a DCF methodology to value TiVo's operating business, we are lowering our target price on TIVO to $14 from $16, although we are maintaining our Buy rating as we see the recent pull-back in the shares as overdone.” TiVo closed on Thursday at $10.98.