Street Sees Upside To SatRad
Street sees upside to struggling sat radio sector
October 28, 2006By Paul Bond, The Hollywood Reporter
With the gift-giving season just around the corner, some Wall Street analysts are suggesting that the time might finally have come to buy the woefully underperforming satellite radio stocks again.With XM Satellite Radio set to discuss full third-quarter financials and current business trends on Nov. 6, and Sirius Satellite Radio to do so Nov. 8, investors will listen closely for clues on whether the players can finish the year with momentum.Some on the Street are expecting some upside to the stocks. Citigroup analyst Eileen Furukawa, for example, recently reiterated her "buy" recommendations on Sirius and XM, despite reining in her near-term subscriber targets for both companies."Even with lower subscriber targets, we believe satellite radio stocks are worth owning," she said.The analyst and her team made in-store visits to 25 Best Buy, Circuit City, Radio Shack and Wal-Mart stores in the New York and New Jersey area and discovered a "slow" sales environment for sat radio tuners.She wasn't discouraged, though, because neither company did much marketing early in the month, and she found that consumer products on the whole have been selling slowly of late as well.XM more recently, though, launched a multiplatform marketing campaign, the first from its creative ad agency Lowe New York. Featured in two commercials are such artists as Johnny Cash, Snoop Dogg, Flock of Seagulls, Regina Specktor, the Circle Jerks and Beethoven, with both ads ending with the line: "170 channels to find what turns you on. Are you on?"...read more:
here10/29/2006 07:47:00 AM
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