Entropic Communications (ENTR) shares are trading sharply higher on new that Comcast (CMCSA) is beginning to roll out multi-room DVR service, allowing people to watch programs recorded in one room on televisions in other rooms.
As Dow Jones Newswires notes, Entropic provides chips used in an in-house cable networking technology called MoCA, an acronym for Multimedia Over Coax Alliance.
In a brief research note this morning, D.A. Davidson analyst Aalok Shah noted that Comcast move to formally roll out “AnyRoom DVR” service, pointing out that it will use MoCA technology to network multiple set-top boxes within the house. He contends the heart of the system will include Entropic silicon. Shah notes that the company remains one of his favorite picks, asserting that Comcast’s move “should bolster investors’ confidence in Entropic’s revenue growth prospects over the next few quarters.” He maintains a Buy rating and $7 target on the stock.
ENTR today is up 87 cents, or 15.3%, to $6.55.
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