Tuesday, October 03, 2006
RBC Capital Cuts SIRI Target From $6 To $5 (With The Stock At $4, That's A 25% Upside)
03-Oct-06, 14:37 In Play,
www.briefing.comSIRI Sirius Satellite tgt cut to $5 from $6 at RBC (3.93 -0.04)
RBC cuts their tgt on SIRI to $5 from $6 saying N.P.D category trends have been soft and SIRI's more difficult Howard comps could impact previous market share gains. The firm says despite stronger recent operational execution versus X.M (XMSR), from absolute E.V perspective, SIRI trades at 33% premium to XMSR and on EV/YE06E Sub basis. The firm believes this valuation gap is unsustainable. The firm is trimming 3Q retail net sub add estimates to 237K from 276K on weak retail category growth in July / August likely continuing through Sept.
OF NOTE: RBC's new estimate for465K total net adds in Q3 is above estimated consensus of approximately 440K.
10/03/2006 04:27:00 PM
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