“Morgan Stanley (NYSE:MS) reiterated its overweight rating on Rovi Corp. (NASDAQ:ROVI) as the company continues to execute on its growth strategy.
Analysts David Gober, Benjamin Swinburne and Cynthia Rupeka said, “”We see further revenue upside for the company in a number of areas including growing guide product sales, incremental web and mobile licenses from traditional and internet video service providers, as well as sales of its TotalGuide product for consumer electronics devices in 2H11 and 2012. Further, as margins grow, we believe that Rovi can generate 20-25% EPS, implying robust upside in shares with a stable P/E multiple, which we believe is reasonable. Our revised price target implies a 20x multiple on 2012E EPS and roughly 16% upside.”"
The bank sees fiscal 2010 EPS of $1.75 and fiscal 2011 EPS of $2.41.”
Duration : 0:1:7