TiVo Shares Fall After Earnings Report
But some analysts continue to recommend the stock.
NEW YORK -- Shares of DVR firm TiVo fell 7 percent-plus in early Wednesday trading following a quarterly loss and subscriber decline reported Tuesday afternoon.
As of 11am ET on Wednesday, the stock was down 7 percent at $9.13 after earlier going as low as $9.06.
But some analysts said there may be upside and continue to recommend investors buy the stock.
Evercore Partners analyst Alan Gould lowered his price target on TiVo from $13.50 to $13, but reiterated his "overweight" rating, which is similar to a "buy" recommendation.
He predicted an update on TiVo's Dish Network/Echostar litigation will provide a "major catalyst" within six weeks.
Weighing possible outcomes and their stock effect, he said a likely stock price after an en banc decision in the case is $13, up 33 percent from Tuesday's closing price.
BMO Capital analyst Edward Williams also has a target price of $13 on TiVo and reiterated his "outperform" rating Wednesday morning. "Although the stock remains hijacked by the legal system with the drawn-out litigation against EchoStar, TiVo continues to drive increased distribution of its products and services through strategic partnerships that should result in a return of subscriber and revenue growth," he said.
Lazard Capital Markets analyst Barton Crockett, who maintained his "hold," or neutral, rating on TiVo said the firm's shares will be worth $6.36 in a patent litigation loss against Dish/Echostar "and $18.74 in a victory with rosy scenarios for the business."