UPDATE: Brean Capital Reiterates Buy Rating, Raises PT on Rovi Corporation Following 2Q14 Review

In a report published Thursday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on

, and raised the price target from $27.00 to $33.00. In the report, Brean Capital noted, “It is time to take another look at ROVI, TP to $33 from $27. Rovi reported in-line 2Q14 results and tightened its guide for the year towards the upper end of its prior range, noting it had over 90% visibility on the rest of the year. The company purchased a related portfolio of 500 patents and refinanced its debt, pushing out maturities and acquired a revolver, both of which should strengthen its hand for upcoming negotiations over renewals with several large service providers. We estimate these deals alone could add over $125 million in annual revenue by the end of 2016, which should translate into EPS in excess of $3.00 in 2017. This company has been in the penalty box forever, but we think these actions, along with management's cautionary stance and consistent delivery, will go a long way to restoring investor confidence and lead to multiple expansion. As a result, we are raising our target price to $33 from $27 and reiterate our Buy rating.” Rovi Corporation closed on Wednesday at $23.71.