Tuesday, February 27, 2007
XMSR: Analyst Comments Begin To Roll In
Wachovia:XM Satellite: Weakening fundamentals create more downside risk should SIRI deal fall through - Wachovia (14.93 )
Wachovia notes XMSR previewed weak Q4 net sub adds of 442K well below their original est of 650K. As expected, XMSR reported very weak '07 guidance including that XMSR will add 1.37 mln to 1.57 mln net new sat subs, or 25% to 34% below firm's and consensus' 2.0 mln est. The result would represent a 7% to 19% decline from 2006's anemic net sub add result. They note the guidance appears driven by continued weak retail demand for the sat radio product. Firm says continued weakening demand for sat radio bolsters their cautious fundamental stance on the group. They reiterate their belief that weak retail will inevitably begin to negatively affect OEM's appetite for sat radio, further pressuring the long term opportunity for sat radio. Further, firm believes weakening demand and a rich valuation were primary reasons for XMSR's' decision to accept a merger.
Sanders Morris:XM Satellite Radio-XMSR 2007 subs guidance is beatable-Hold@SMMI
- Sanders Morris believes the beatable subs number cou XM Satellite Radio-XMSR 2007 subs guidance is beatable-Hold@SMMI - Sanders Morris believes the beatable subs number could act as a catalyst to increase share value if guidance is raised.
RBC:XM Satellite-XMSR target lowered to $14 from $16 on non-merger
economics-OP@RBCM - RBC lowered their target as they bel XM Satellite-XMSR target lowered to $14 from $16 on non-merger economics-OP@RBCM - RBC lowered their target as they believe the company's
2007 guidance indicates a weak outlook and higher than expected costs driven by the merger.
Pacific Crest:XM Satellite Radio-XMSR fundamentals remain weak, see no catalyst -SP@PACS - Pac Crest believes the stock will trade on XM Satellite Radio-XMSR fundamentals remain weak, see no catalyst-SP@PACS - Pac Crest believes the stock will trade on merger sentiment.
2/27/2007 08:12:00 AM
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