BMO Capital analyst Edward Williams this morning launched coverage on TiVo (TIVO) with a Buy rating and $25 target price, well ahead of yesterday’s close at $17.26.
While he notes that the stock is up more than 70% since a favorable March 4 ruling in its legal battle with Dish Network (DISH), Williams contends that “additional upside remains” due to its ability to protect its IP via the patent system while differentiating its products in the DVR market. “Although enforcing its patents through litigation is costly and time consuming, we believe TiVo will as easier time securing licensing agreements with [cable and satellite operators] given recent favorable decisions” in the case against DISH.
Williams adds that he thinks the company is “poised to resume growing its subscribers” as DISH runs out of legal options, and following the recent launch of the company’s Premier box, and the pending launch later this year of a new HD box for DirecTV (DTV).
TIVO this morning is up 39 cents, or 2.3%, to $17.65.
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