XMSR Q3: The Analyst Comments Begin To Roll In

Stifel:
XM Satellite-XMSR see significant upside to $16 target in merger scenario-Buy at STFL
(theflyonthewall.com 11/07 06:33:30)

Stifel sees significant upside to their target if SIRIwere to make a bid for XMSR, a scenario the broker thinks is increasinglylikely.

Bank Of America:
XM Satellite-XMSR valuation gap with SIRI should narrow into 2007-Buy@BOFA -(theflyonthewall.com 11/07 07:09:04)Bank of America is increasingly confident in their long XMSR, short SIRI pairtrade, even after the yesterday's rally in XMSR shares. The broker thinks SIRI could have trouble meeting its year-end subscriber target of 6.3M as retail demand remains weak.
from www.briefing.com
XM Satellite: Increasingly confident in the XMSR/SIRI pair trade - BofA (13.17 )
After yesterday's strength, BofA is increasingly confident in the XMSR/SIRI pair trade, with the valuation gap between XMSR and Sirius (SIRI) should narrow as they head into Y07. Firm says SIRI could struggle to make its year-end subscriber target of 6.3 mln and there is increasing evidence that the industry is moving toward an OEM driven model (which favors XMSR). Firm says retail demand remains weak and they see little upside to SIRI's retail share. They view satellite radio as transitioning to an OEM driven business model and projects the OEM channel to account for 54% of gross adds in Y07 and two-thirds of gross adds by Y10. They believe that SIRI is at a disadvantage given the smaller share of its OEM partners and its greater exposure to the Big 3 (~80% of SIRI's partners' vehicles are F and DCX, while GM accounts for 41% of XMSR's). In an OEM driven world, XMSR's 20% enterprise value discount to SIRI seems unjustified.


CSFB:
Credit Suisse Reiterates XM Satellite Radio At Outperform With $17 Price Target(Realtimetraders.com 11/07 09:44:36)
(RTTNews) - Credit Suisse Reiterates XM Satellite Radio (XMSR) At Outperform With $17 Price Target

Morgan Stanley:
Morgan Stanley Reiterates XM Satellite Radio Holdings Inc. At Overweight With $25 Price Target(Realtimetraders.com 11/07 09:50:17)
(RTTNews) - Morgan Stanley Reiterates XM Satellite Radio Holdings Inc. (XMSR) At Overweight With $25 Price Target

RBC
Reiterates Outperform, Price target goes from $20 to $18

11/07/2006 07:02:00 AM

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