Thursday, October 05, 2006

S&P Positive on SIRI, $8 Target Price

Theoretically, S&P opinions carry more weight/credibility than brokers, as S&P does not maintain positions in stocks and does not have investment banking relationships with the companies.

S&P Maintains Strong Buy Opinion On Shares Of Sirius Satellite
S&P Marketscope - October 05, 2006 10:24 AM ET

After pre-announced 441,101 Q3 net subscriber adds, vs. 285,000 for rival XM Satellite (XMSR 11.70***), we think SIRI is on track to add another 1.2M in Q4. We have high hopes for strong holiday retail sales of Stiletto 100, SIRI's first live portable offering with WiFi capability. But despite the favorable end to FCC emission probe, we think these high-risk shares have been stalled by overall sentiment on satellite radio. We note that SIRI recently affirmed its target of $3B revenue and $1B free cash by '10. Our 12-month target price stays $8 on relative enterprise value/sales.