April Horace Upgrades Sirius
May 3, 2006
Analyst April Horace of Hoefer & Arnett has issued a report following Sirius' May 2nd Q1 Conference Call.
SIRI Strong & Confident About Future
SIRI at Subscriber Cash Parity
SIRI increased subscriber guidance from 6million to 6.2 million
Satellite Standard Group bring you excerpts from the report:
"Sirius Increased the EBITDA loss to $565 million from $540million due to increase in subscriber additions, but more importantly the cash burn remained the same at $480 million due to the fact that SIRI is now at cashparity for subscriber additions (i.e., subscriber prepayments are just slightlyhigher than SIRI's SAC costs). We believe that this is an important metric for SIRI and gives a good indication as to how SIRI could be free cash flow positivein the 4th quarter. For example, we are forecasting SIRI's fourth quarterEBITDA loss to be a $170 million less approximately $155 million in subscriber prepayments and NFL amortization of $9.7 million resulting in only a $10million potential shortfall. We believe that SIRI can hit the mark of free cashflow in the fourth quarter.""...We are increasing our rating from a Buy to a Strong Buy and maintaining our price target of $7.00, due to the fact that SIRI more than delivered on financial results. We think Howard has delivered and continues to\ndeliver for Sirius and that some reported financial metrics are misunderstood...."April Horace has traditionally ben very accurate with her outlook on Sirius, and is amongst the top "Star Ranked" analysts for the equity.
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here5/03/2006 11:42:00 AM
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