Monday, November 27, 2006

Forbes: Jacoby (Negative) vs. Lapin (Positive)

XM, Sirius -- The Plot Thickens
Matthew Kirdahy, 11.27.06, 6:26 PM ET, Market Scan, Forbes

Sirius Satellite Radio and XM Satellite Radio are exercising their strengths this quarter hoping subscription growth this year, bolstered by a holiday shopping season, will parlay into a 2007 with some cash flow.
XM seems to be honing in on its rapport with automakers while Sirius is pushing for retail subscriptions this holiday season keeping the explosive numbers from last year in mind.
Banc of America analyst Jonathan Jacoby likes XM for its firm stake in the auto industry as he forecasts a transition in the satellite radio business, favoring factory installation of the service in cars, opposed to an industry driven by retail sales.
He rates the stock a “buy” with a 12-month price target of $17.
Gramercy Capital Management analyst Joan Lappin sides with Sirius, expecting its surge in subscriptions this year to last through the fourth quarter. That’ll narrow the subscriber gap between the two companies, among which Sirius is second....read more: here