Forbes/Jacoby Duo are at it again!
May 10, 2006
This hit the wires AGAIN this afternoon....
Doesn't Forbes have anything else to write about?
Does Jacoby follow any other stocks?
Market Scan
XM Programming To Focus On In-House Brands
Mary Crane, 05.10.06, 1:41 PM ET
Banc of America analyst Jonathan A. Jacoby said he continues to recommend shares of XM Satellite Radio over those of Sirius at XM's current stock price of around $18.
The analyst maintained his "buy" rating on XM Satellite Radio and price target of $30, as well as his "neutral" rating and $5 price target on Sirius Satellite Radio.
Jacoby's report to investors Tuesday focused on his meeting with XM Vice President of Programming Eric Logan, who told analysts his programming strategy focused on developing XM's own brands in-house, rather than buying brands.
His mission: to develop the world's leading radio content but make sure his product creates value for the company.
"Logan's thought process is simple," Jacoby said. "It is cheaper and more effective to develop content/programs within the core brands and use acquisition brands as a supplement to the developing talent.
Acquisition brands like "Oprah and Friends," set to launch in September, and Bob Dylan's new radio show are supplementary to XM's organic content and program development, Logan told analysts.
To reach as many customers as possible, Logan said he aims to develop 100 niches that each appeal to one million people, instead of creating a few super channels that have broader appeal.
Despite Jacoby’s optimism on XM stock, Logan is operating in a radio and television broadcasting market with weak fundamentals, the analyst said.
Jacoby's favorite "buy"-rated picks remain those companies with high growth potential -- like XM, Entravision Communications, or Univision -- or high value, like Clear Channel Communications or Radio One.
His top pick was Univision, with a price target of $40.
Jacoby's disclosures never seem to be included in the Forbes articles.
5/10/2006 09:47:00 PM
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