Rovi Given Buy Rating at Brean Capital (ROVI)
Rovi (NASDAQ:ROVI)‘s stock had its “buy” rating restated by equities research analysts at Brean Capital in a research note issued to investors on Thursday. They currently have a $33.00 price target on the stock, up from their previous price target of $27.00. Brean Capital’s target price suggests a potential upside of 39.18% from the company’s current price.
The analysts wrote, “It is time to take another look at ROVI, TP to $33 from $27. Rovi reported in-line 2Q14 results and tightened its guide for the year towards the upper end of its prior range, noting it had over 90% visibility on the rest of the year. “The company purchased a related portfolio of 500 patents and refinanced its debt, pushing out maturities and acquired a revolver, both of which should strengthen its hand for upcoming negotiations over renewals with several large service providers. We estimate these deals alone could add over $125 million in annual revenue by the end of 2016, which should translate into EPS in excess of $3.00 in 2017. This company has been in the penalty box forever, but we think these actions, along with management’s cautionary stance and consistent delivery, will go a long way to restoring investor confidence and lead to multiple expansion. As a result, we are raising our target price to $33 from $27 and reiterate our Buy rating.”
Rovi (NASDAQ:ROVI) opened at 23.71 on Thursday. Rovi has a 1-year low of $16.00 and a 1-year high of $25.34. The stock has a 50-day moving average of $23.71 and a 200-day moving average of $23.23. The company’s market cap is $2.217 billion.
Rovi (NASDAQ:ROVI) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.02. The company had revenue of $137.10 million for the quarter, compared to the consensus estimate of $127.85 million. During the same quarter in the previous year, the company posted $0.46 earnings per share. The company’s revenue for the quarter was up 6.1% on a year-over-year basis. Analysts expect that Rovi will post $1.71 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Zacks downgraded shares of Rovi from an “outperform” rating to a “neutral” rating in a research note on Tuesday, July 1st. They now have a $26.70 price target on the stock. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and two have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $23.12.
Rovi Corporation is focused on powering the discovery and enjoyment of digital entertainment by providing a set of integrated solutions that are embedded in its customers’ products and services and used by end consumers to simplify and guide their interaction with digital entertainment.
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