Wednesday, January 03, 2007

Analyst Comments Start To Roll In


Sirius Satellite-SIRI Street should have a mild positive reaction to(theflyonthewall.com 01/03 08:01:18)news-Buy@OPCO - The news of Sirius becoming FCF BE in 4Q06 and its 6 millionsubs number is expected to trigger a mildly positive reaction from theStreet. The firm expected Sirius to reach this level in 2Q07, not 4Q06.

Bank of America:

XM Satellite Radio-XMSR will probably miss low end of subscriber(theflyonthewall.com 01/03 07:48:15)guidance-Buy@BOFA - The firm sees near-term downside as they believe XMSRwill miss the low end of its subscriber guidance range for the year-end of7.7M-7.9M.

Deutche Bank:

Sirius Satellite-SIRI 6.0M subs will be viewed as good news, maintain(theflyonthewall.com 01/03 07:47:11)Buy@DBAB - With shares down 7.5% in Q4 and just above the 52-week low, DBABbelieves the 6.0M subs will be viewed as good news.

Morgan Joseph:

Sirius Satellite: Q4 retail market soft; 2007 must focus on OEMS - Morgan Joseph -Update-
Morgan Joseph states that the Q406 retail market is soft in their view, and that the 2007 focus must be on OEMs. Despite the better-than-expected subscriber numbers, they believe recent NPD sales data indicate a soft satellite radio retail market, which could cause the co's 4Q06 financial results to be below their expectations. Overall, they continue to believe historical retail growth is a thing of the past for SIRI, and that it will be necessary for the co to focus on its OEM partnerships to stimulate growth in 2007. Maintains Hold rtg.


Sirius Satellite: Positive FCF marks a new era, prefer XMSR - Cowen (3.54 ) -Update-
Cowen believes that 2007 is the year to own SIRI as high operating leverage begins to demonstrate free cash flow potential. Firm notes that SIRI achieved its first ever qtr of positive FCF, marking an inflection point on the co's path to profitability. SIRI also reported YE06 subs of 6 mln, in line with lowered guidance. Maintains Outperforms on both SIRI and XMSR, however they prefer XMSR due to its higher OEM exposure.

Stifel Nicolaus:

Stifel Nicolaus Sees January Rebound in Sirius Satellite (SIRI) Shares
Stifel Nicolaus comments on Sirius Satellite Radio (Nasdaq: SIRI) following 2006 subscriber numbers and news the company was free cash flow positive for the first time. The firm said a January rebound is likely after December tax loss selling.Analyst Kit Spring said, "We believe SIRI shares were particularly weak over the past two weeks due to year-end tax loss selling. We believe a strong rebound over the next month is likely (the so called "January Effect") with CES next week and the Detroit Auto Show Jan. 13-21 possibly providing some positive news flow."The analyst also said they continue to believe Sirius and XM Satellite Radio (Nasdaq: XMSR) will attempt a merger in 2007 and see $7B of merger synergies.The firm maintains their Buy rating and $6 price target on Sirius Satellite. The firm also maintained their Buy rating and $18 price target on XM Satellite Radio.

1/03/2007 07:50:00 AM

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