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Roth Capital initiated analytical coverage of TiVo (TIVO
) with a strong buy recommendation and set a $19 price target.
Analyst Richard Baldry says he thinks TiVo is building a uniquely attractive business model with potential to build a lucrative software-driven, recurring service-revenue base. Baldry says new partners such as Pioneer, Toshiba, and GM bolster the credibility of TiVo's business model and earnings potential. With over 100% subscriber growth in the last quarter, Baldry says TiVo's roughly 1.6 million subscribers represent an attractive asset, which should drive increasing revenues over time as new, incremental revenue sources emerge. The analyst sees per-share losses of 94 cents in fiscal 2005 (ending January) and 24 cents in fiscal 2006.