Berstein Research Sees Sirius And XM Oversold
May 5, 2006
Analyst Craig Moffett of Bernstein Research issued a compelling report on Satellite Radio on May 4, 2006.
Highlights from the report include:
- Bernstein considers Sirius and XM to be oversold, and believes that SDARS product is compelling.
- Subscriber growth is seen as strom with industry subscribers totalling more than 15,000,000 by the end of 2006
- SAC and CPGA are declining for both SIRI and XMSR. These companies operate in a virtual duopoly, the economics of which can enable SIRI and XM to earn attractive margins going forward.
- Sirius is expected to report Positive Free Cash Flow in Q4. Such an event would prove the viability of the business model.
SIRI rated OUTPERFORM with $7 price target.
XMSR Rated OUTPERFORM with $33 price target
The report dicusses many aspects of SDARS, and includes financial models, etc. Investors can learn more about Berstein Reseach by clicking HERE
5/05/2006 08:58:00 AM
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