TiVo Stock at $19 per Share? What’s Richard Baldry Smoking?

This morning TiVo’s stock is taking a little bit of a beating in reaction to yesterday’s analyst call. After closing at $4.34 yesterday, TiVo is down to $3.90 at present, roughly a 10% decline in value. The stock traded as low as $3.75 earlier this morning.

Some of the reasons for the decline might include an analyst downgrade this morning from SunTrust Robinson Humphries as well as a negative quote from Piper Jaffray, “While optically this may look appealing to those focused on the bottom-line performance, we do not believe this changes TiVo’s precarious position,” Piper Jaffray said this morning.

Of course while some buys are still out there, most analysts who cover the stock maintain pretty moderate price targets on TiVo’s stock. Sanders Morris Harris reiterated their hold on the stock with a $4.20 price target. JANCO Partners has reiterated their market perform rating this morning. They currently have a price target of $3.63 on the stock. Piper Jaffray who issued the somewhat negative comment this morning still reiterated their market perform rating on the stock with a $5.00 target price.

And then we have Roth Capital Partner’s Richard Baldry who despite the recent precipitous decline in TiVo’s stock price came out and reiterated his strong buy recommendation with a $19 target price for the next 12 months. HUH? $4.20, $3.63, $5.00 and then $19?!? What’s this guy smoking? Even our old friend Ryan Hutchinson who downgraded the stock to hold on January 12th this year had the good sense to drop his $14 price target he previously had maintained on the stock.

Baldry originally started covering the stock last July with a strong buy — but a $19 price in the next 12 months? That’s over a 430% gain, on yesterday’s price before today’s drop, and in the next 12 months! Wow! Like I said, what’s Baldry smoking? Somebody might want to get Warren Buffet on the phone. There sure aren’t very many opportunites to make 430% returns on your money any more. Maybe it’s finally time to start tempting old Warren to get into the technology market.

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