Rovi rises after analyst upgrades shares

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SAN FRANCISCO (AP) — Shares of TV listings data and copy protection company Rovi Corp. rose Wednesday after an analyst upgraded the stock, saying demand for its TotalGuide TV programming guide will help protect it from weaker consumer electronics spending.

THE SPARK: In a client note, JPMorgan analyst Sterling Auty raised his rating for Rovi to “Overweight” from “Neutral,” saying that since he downgraded the stock in late 2010 the company has received contracts at a more rapid pace for TotalGuide, which is built into TV sets. He thinks this will help its product revenue climb.

Auty kept his $60 price target for the stock.

THE ANALYSIS: Auty thinks that with the growth in contract deals Rovi’s product revenue could grow at a speed that will help offset weakness coming from such things as its declining digital copy protection business.

“Investors have been so laser focused on the headlines from Best Buy talking about double digit declines in the TV category and estimate reductions by groups like DisplaySearch that we think they have overlooked the growing penetration of TotalGuide,” he said.

SHARE ACTION: Rovi shares climbed $2.81, or 6.5 percent, to $46.28 in afternoon trading.