Friday, May 05, 2006

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

SSG Has Merged. You Can Read All Of The Latest SSG Content By Clicking Here


Post a Comment

SSG is not a Financial Advisor. Read Disclosure: HERE


Sirius Radio TSS-Radio Blog Sirius Answers Credit card merchant account


Search by Label


Logo Design:
Jeremy Sprout

Designed by
miru designs

Powered by