More Analyst Comments this morning
June 12, 2006
Friedman Billings Ramsey on XMSR
XMSR: Reiterate Outperform - The firm noted Delphi announced an agreement with the United Auto Workers union, including financial support from General Motors, to offer buyouts to all hourly employees. This agreement is a major advance as Delphi's works to avoid a strike. While we believe a strike would have minimal impact on XM`s retail distribution and a short-lived impact on GM production, XM's largest OEM partner, we believe that the positive resolution of this overhang will benefit shares of XMSR. With several additional overhangs weighing on shares of XMSR, we expect near-term share appreciation to be constrained. That said, we expect the resolution of some of these overhangs over the next several quarters to provide a catalyst for XM shares. Our $28 price target is based on our DCF analysis, which utilizes a 13% WACC and a 4% terminal FCF growth rate.
6/12/2006 09:22:00 AM
SSG Has Merged. You Can Read All Of The Latest SSG Content By Clicking Here
0 Comments:
SSG is not a Financial Advisor. Read Disclosure: HERE
--------------------------------------------------------
