TiVo Stock up 17% After Latest Earnings

UPDATED: Analysts say that the quarterly report Wednesday afternoon exceeded their expectations in terms of financials and lauded the DVR pioneer for returning to growth in third-party subscribers.

NEW YORK - Shares of DVR pioneer TiVo rose 17 percent Thursday after analysts lauded the company's latest quarterly results from late Wednesday.

TiVo's stock closed up 17 percent at $9.50, giving the company a market value of $1.15 billion, according to Bloomberg. The stock has over the past year traded between $7.06, hit earlier this month, and $12.65 in late April.

Janney Montgomery Scott analyst Tony Wible, who has a "buy" rating on the stock, increased his fair value estimate on the stock from $16.50 to $18 saying that TiVo "will benefit from rising IPTV competition that will lead more [pay TV companies] to quickly seek next-generation interface technology on a cost effective manner." In a report entitled "Turning the Tide," he also lauded the company's swing to growth in third-party subscriber net additions.

Lazard Capital Markets analyst Barton Crockett, who has a "buy" rating and $13 target price on TiVo, similarly said "we got what we wanted" in the latest earnings report: "the first growth in third-party subs in five years and confirmation that the DirecTV launch is on deck very soon." Third-party subs grew by 10,000.

Evercore Partners analyst Alan Gould, who has an "equal weight" rating and $11 price target on TiVo, echoed his peers. Quarterly results were "better than expected, particularly on a subscriber basis," he wrote.

Email: Georg.Szalai@thr.com

Twitter: @georgszalai