Markets & Finance

Thomas Weisel Lowers TiVo to 'Underperform'


Thomas Weisel downgraded TiVo (TIVO) to underperform from peer perform.

Analyst Gordon Hodge says the downgrade of the digital-video recorder is based on concerns about a relationship between TiVo and DirecTV, pending General Electric's Hughes Electronics' (the parent of DirecTV) merger with News Corp., plus concerns that TiVo hasn't yet signed a licensing deal with a cable multiple system operator (MSO) to penetrate the cable-subscriber market.

Hodge thinks Thursday's stock weakness may be related to a September 22 letter to the FCC, issued by News Corp., that relates to the Hughes merger. He thinks the letter raises his chief concerns for the stock: that TiVo hasn't yet signed a cable deal, and that and a long-term relationship with DirecTV could be in jeopardy if News Corp. begins making and marketing its own digital-video recorders within two years.


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus