Lazard Analyst Upgrades TiVo's Stock

Barton Crockett says the company's shares are "too cheap to ignore."

NEW YORK - TiVo got some love from Lazard Capital Markets analyst Barton Crockett Tuesday as he upgraded the company's stock from "neutral" to "buy," saying it is "too cheap to ignore."

Crockett, who was recently named the top broadcasting and entertainment analyst for 2010 by the Wall Street Journal, also introduced a $13 target price. That would be up about 40 percent from Monday's closing price of $9.36. As of 1:30pm ET, TiVo shares were down 1 percent at $9.27.

Crockett said TiVo’s legacy business - its standalone subscribers and old deals with pay TV firms - is "worth near where the stock is trading now." So, he sees upside from what he called "a high likelihood of new deals and strategic value from unique, patented technology and a recognizable brand."

A recent legal settlement with Dish Network focused on DVR technology and possible similar deals could be worth $3 per share, the analyst argued. "A recent major settlement we believe sets a benchmark for new deals, potentially within a year, at AT&T and Verizon to end litigation before bills mount and also at Time Warner Cable, to stay out of court," Crockett explained, predicting combined intellectual property cash payments of more than $334 million after-tax.


Twitter: @georgszalai