Analyst sees 30% chance of Tivo reaching $20 following court
In a note to investors earlier today, Craig-Hallum analyst Mark Argento wrote that the patent infringement case involving TiVo (TIVO) and Echostar (SATS) - which an appeals court is expected to decide in the near future- is based on two main issues. The appeals court will rule on whether a lower court- which ruled in favor of TiVo - had jurisdiction over the case. The higher court will also decide whether the district court was right when it ordered EchoStar to disable all of its DVRs' functionality.Argento believes there is a 30% chance that TiVo will prevail on both items, and a 50% chance that it will lose the jurisdictional question but prevail on the DVR issue. The win-win scenario would send TiVo's stock to around $20 per share, while the mixed verdict would send it down to the $7-$8 range, the analyst predicted. In early afternoon trading, TiVo rallied 42c, or 4.78%, to $9.16.
Credit: Financial News Network
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