Goldman Sachs Group Inc. lowered shares of Rovi Corp. (NASDAQ:ROVI) from a neutral rating to a sell rating in a report released on Tuesday, TheFlyOnTheWall.com reports. Goldman Sachs Group Inc. currently has $15.00 price objective on the stock, down from their previous price objective of $21.00.
“We downgrade Rovi to Sell from Neutral as we see 10% downside to our $15 12-month price target versus the 16% upside for our coverage universe. Our Sell thesis is based on our view that the company faces continued growth challenges in its core business and will need to make a downward revision to its long-term operating margin target of 45% (vs. our revised CY14/CY15 operating margin expectations of 38% and 39%). Given our concerns, we are lowering our CY14/CY15 non-GAAP EPS estimate to $1.82/$1.96 from $1.88/$2.04 versus consensus of $2.03/$2.30. Our revenue and margin estimates are the key drivers of our downside view.,” Goldman Sachs Group Inc.’s analyst wrote.
Several other analysts have also recently commented on the stock. Analysts at Zacks downgraded shares of Rovi Corp. from a neutral rating to an underperform rating in a research note to investors on Monday. They now have a $15.90 price target on the stock. Separately, analysts at Cowen and Company cut their price target on shares of Rovi Corp. from $19.00 to $16.50 in a research note to investors on Thursday, October 31st. They now have a market perform rating on the stock. Finally, analysts at Brean Capital cut their price target on shares of Rovi Corp. from $26.00 to $22.00 in a research note to investors on Thursday, October 31st. They now have a buy rating on the stock. Four investment analysts have rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the stock. The stock presently has an average rating of Hold and an average target price of $20.10.
Shares of Rovi Corp. (NASDAQ:ROVI) traded up 1.03% during mid-day trading on Tuesday, hitting $16.69. 477,562 shares of the company’s stock traded hands. Rovi Corp. has a 1-year low of $14.16 and a 1-year high of $26.55. The stock’s 50-day moving average is $18.60 and its 200-day moving average is $21.17. The company’s market cap is $1.630 billion.
Rovi Corp. (NASDAQ:ROVI) last posted its quarterly earnings results on Wednesday, October 30th. The company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by $0.07. The company had revenue of $143.00 million for the quarter, compared to the consensus estimate of $151.93 million. During the same quarter in the prior year, the company posted $0.56 earnings per share. The company’s quarterly revenue was down 12.6% on a year-over-year basis. On average, analysts predict that Rovi Corp. will post $1.87 earnings per share for the current fiscal year.
Rovi Corporation is focused on powering the discovery and enjoyment of digital entertainment by providing a set of integrated solutions that are embedded in its customers’ products and services and used by end consumers to simplify and guide their interaction with digital entertainment.
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