Thursday, January 18, 2007
Analyst Comments Today
Citigroup:
(theflyonthewall.com) Satellite Radio: FCC's Martin stated a known fact, rules can be
changed@SBSH -
Citigroup believes Martin was not taking Satellite Radio: FCC's Martin stated a known fact, rules can be changed@SBSH
- Citigroup believes Martin was not taking a position on the merger and they continue to feel both companies are interested in a merger. The broker maintains Buy ratings on both XMSR and SIRI.
Oppenheimer:
F.C.C. Chairman comment negative for satellite radio merger - Oppenheimer
Oppenheimer says recent satellite stock appreciation (due, they expect to anticipation of a merger between SIRI and XMSR) was eclipsed today as the F.C.C. Chairman commented on regulations banning both satellite licenses (or services) being combined into one company. With the pullback of the equities, firm recommends investors buy the SIRI and XMSR shares on the basis of improving fundamentals. Although 4Q06 subscriber results were disappointing, fundamental subscriber growth seems to be improving. Looking at 2007 and beyond, firm says O.E.M. subscriber growth should deepen materially as satellite radio becomes standard for an increasing share of automakers.
Bear Stearns:
01/18/2007 : JAGNote by Bear Stearns & Co., Inc
SIRI: Upgraded - The firm upgraded shares from Underperform to Peer Performciting valuation.
Sirius Satellite upgrade details (3.86 )
As mentioned earlier, Bear Stearns upgraded SIRI to Peer Perform from Underperform, noting that yesterday SIRI and XMSR fell significantly based on comments made by FCC Chairman Kevin Martin at the Jan 2007 Open Commission Meeting. Yet firm believes that no incremental information or potential intention was offered by the comments, and with the citing of the rule 25.118, they believe that Kevin Martin merely acknowledged what has already been widely discussed in the marketplace. Hence, firm thinks the reaction was overdone, providing a better entry point for SIRI. Firm believes that SIRI and XMSR will be driven more in the short-term by merger speculation, and thinks SIRI will trade more in-line with its peer.
1/18/2007 08:01:00 AM
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