Wednesday, May 03, 2006

Tuna Amobi Reiterates Strong Buy On Sirius

May 3, 2006

Following the May 2, 2006 Sirius Satellite Radio Conference Call, Standard & Poors analyst Tuna Amobi, CPA, CFA reiterated a STRONG BUY on Sirius.

Satellite Standard Group brings you excerpts from his comments:

Sirius Satellite Radio (SIRI ): Reiterates 5 STARS (strong buy)

Analyst: Tuna Amobi, CPA, CFA

"Sirius' first quarter net subscriber adds of 761,187 materially beat our estimate, revised up in late March after the company passed the 4 million mark. As expected, one-time equity grants to Howard Stern weighed on the first quarter loss per share of 33 cents, vs. a 15-cent loss one year earlier, one cent wider than our estimate. Sirius raised its 2006 subscriber target by 200,000 to over 6.2 million. We see the robust S50 portable driving gains at retail channel (70% of first quarter net adds), with auto OEM channel likely to ramp as well. Subscriber acquisition costs should trend down, and despite litigation, we see net upside on Stern, including ads, which rose to 6% of revenue."

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