In a report published Wednesday, Piper Jaffray analyst Michael Olson maintained an Overweight rating on TiVo TIVO and raised the price target from $15.00 to $15.50.
In the report, Piper Jaffray says "TiVo reported strong Q3 operating metrics with a record breaking 295k net MSO sub adds during the quarter. However, revenue came in roughly in line due to lower than expected MSO ARPU and higher than anticipated TiVo-owned churn. While new rollouts are driving increased MSO net adds and MSO ARPU should benefit from a partial quarter of Virgin revenue being reported as Service revenue, 4Q top line guidance midpoint came in slightly below the Street and Adj. EBITDA guidance came in below consensus. We maintain OW & slightly increase PT to $15.50 (from $15) based on our belief that with $10.21/shr in cash and guaranteed future payments, downside is limited and secular trends within the service provider space continue to be in the TiVo's favor, even if adoption rates of next gen TV offerings are not happening as quickly as expected."
TiVo closed on Tuesday at $13.24.
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