News

Strong Sales Boost TiVo

1/04/2004 7:00 PM Eastern

Rodman & Renshaw analyst Daniel Ernst restated his "market outperform" rating and $14 price target on TiVo Inc., after reports of strong holiday sales for the digital video recorder service.

Ernst expects TiVo to report 350,000 new subscribers in the fiscal 2004 fourth quarter ended Jan. 30 – about 233,000 as a result of its agreement with satellite service provider DirecTV Inc. (as opposed to 40,000 in the fourth quarter of fiscal 2003) and 177,000 from standalone sales (versus 75,000 in the fourth quarter of fiscal 2003). That disparity, Ernst wrote, leaves material room for upside.

"We continue to believe that TiVo will remain among the top vendors of DVR technology," Ernst wrote.

September