Monday, August 21, 2006

Stifel Comments On Ford Production Cuts, Maintains Buy On Sirius

Stifel comments via www.briefing.com:

Sirius Satellite: Ford production cuts are only a slight risk - Stifel (www.briefing.com, 8:13 AM, 8/21/2006)
Stifel believes Ford production cuts increase risk that SIRI could mildly miss guidance. They say Ford, the #2 automaker in U.S. w/ ~2.9 mln cars produced, is SIRI's #1 potential partner based on volume, though Ford is about a year behind SIRI's #2 partner Chrysler in penetration. Based on the cutbacks firm thinks there could be ~50k risk to their assumption - not that big relative to 6.3 mln projected subs by year-end. They think there is too much pessimism already in the stock. They believe Sirius and XMSR will come much closer than the Street expects to long-term guidance as car manufacturers ramp up their installation rates toward standard by decade-end.

Stifel comments via www.newratings.com

Sirius Satellite Radio "buy," estimates raisedMonday, August 21, 2006 8:12:03 AM ETStephens Inc.NEW YORK, August 21 (newratings.com) - Analysts at Stifel Nicolaus & Company maintain their "buy" rating on Sirius Satellite Radio Inc (SIRI.NAS), while raising their estimates for the company. The target price is set to $6. In a research note published this morning, the analysts mention that Ford has announced that it would cut its 4Q06 production by 21%, which is likely to adversely impact Sirius Satellite Radio’s performance. The analysts believe that markets concerns about pending churn are overdone. Stifel Nicolaus & Company expresses its optimism regarding Sirius Satellite Radio meeting its long-term guidance,a s car makers ramp up their installation rates towards the end of the decade. The EPS estimates for 2006 and 2007 have been reduced from -$0.85 to -$0.84 and from -$0.41 to -$0.40, respectively.

8/21/2006 07:36:00 AM

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