XMSR: S&P Maintains 3 Stars
XM Satellite Radio (
XMSR)
Maintains 3 STARS (hold)
Analyst: Tuna Amobi, CPA, CFA
Before a one-time loss we estimate at 1 cent per share, the company's first quarter loss per share of 39 cents, vs. a 55-cent loss one year earlier, is in line with S&P and Street estimates. We see multi-year ramp up of installation in OEM automotive units (GM, Honda, Nissan, Toyota), vs. a dip in conversions and more retail weakness. XM affirms 9.0-9.2 million subscribers for 2007 and sees $111-$114 cost per subscriber (vs. a prior forecast of $108), and expects a $170-$180 million adjusted operating loss vs. $166 million, but positive 2008 EBITDA. With potentially formidable odds against regulatory approval of merger with Sirius (
SIRI), our 12-month target price stays at $13...read more:
here4/27/2007 06:00:00 AM
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