J.P. Morgan Maintains Neutral on Rovi

J.P. Morgan is out with its report today on Rovi (NASDAQ: ROVI), maintaining Neutral.

In a note to clients, J.P. Morgan writes, "Google announced today it is acquiring privately held SageTV (terms undisclosed), which makes DVR and media management software. We believe this is a slight negative for Rovi for two reasons. First, this move could signal an increased focus in having Rovi-like functionality outside of their agreement with Rovi. Second, while we believe Google is not a significant Rovi customer, we wonder why Google did not leverage Rovi for this technology given their existing relationship. All-in-all, this does appear to be a very small transaction."

Shares of ROVI closed Monday at $54.14.