Friday, December 01, 2006

Oppenheimer Reiterates Strong Rating On Sirius

December 1, 2006

Analyst Note: Sirius Video Service - Friday December 1

Oppenheimer Reiterates Strong Rating As Sirius Says It May Have Video Service by End of 2007

NEW YORK (AP) -- Oppenheimer analyst Thomas Eagan reiterated his bullish rating for Sirius Satellite Radio Inc. after the broadcaster's CEO, Mel Karmazan, said his company may launch a video service by the end of 2007.

The executive said the company will soon sign agreements with three television makers who would make handsets capable of playing video.

Eagan said Sirius will be able to transmit the video signal using its existing satellite and repeater infrastructure.

"At first, the video service would likely consist of three or more children's channels," he wrote in a note to investors. "Advertising would likely be included."
The analyst said Sirius' devices would be smaller and lighter than existing in-car television systems.

Sirius is the No. 2 player in the satellite radio sector behind XM Satellite Radio Holdings Inc.
Sirius shares fell 6 cents to $4.20 in recent trading on the Nasdaq. XM was off 17 cents to $14.27.