TiVo Inc.'s position in the TV market, combined with a strong offering and large potential market, make it a sound takeover target for acquirers including Microsoft , Dell, Amazon , Google , Cisco , Alibaba and Apple , Albert Fried & Company said in a note. "While we like TiVo's roughly $400 million share repurchase authorization we think the $1.2 billion market capitalization and $850 million in cash, make it an exceptional bolt on opportunity," analyst Rich Tullo wrote in the note to investors. TiVo's valuation is too cheap and either the stock market or the M&A market are likely to close the gap, he wrote. Apple would make a good cultural fit for the company and the iPhone maker has been looking for a TV deal for years, he wrote. "We think Wall Street has it wrong when they think new Broadband regulations are a threat to TiVo; they are an opportunity no matter what the outcome in our view," said the analyst. TiVo shares were not yet active in premarket trade and are down 8% in the year so far, while the S&P 500 has gained about 12%.
Copyright © 2014 MarketWatch, Inc.