Roth Capital initiated coverage on TiVo (TIVO

) with strong buy.

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. He 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 last quarter, he 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.

Baldry sees a 94-cent fiscal 05 (Jan.) loss, and a 24-cent fiscal 2006 loss.