By Brandon Matthews
In a report issued yesterday by Barrington Research Associates, Senior Investment Analyst Jim Goss maintained his OUTPERFORM rating on Sirius XM Radio (SIRI) while upgrading his 2010 and 2011 price targets following the company’s third quarter earnings report.
Mr. Goss raised estimates on better than expected revenue and improving metrics going forward, such as improving subscriber numbers due in part to the cash for clunkers program, increased ARPU and continued cost consolidation. Increased EBITDA projections and faster implementation of the royalty recovery fee were the main drivers of his raised 2010 base target price to 1.25 and his 2011 base target price to 1.50.
Barrington Research Associates provides information intended for institutional investment firms. As such, the suitability of any analysis should not be taken as a recommendation to buy or sell shares of Sirius XM Radio on an individual basis. Investors should seek the advice of a professional before acting on any recommendation, to determine the suitability of a particular investment for their own individual needs.
Position: Long SIRI
Good job Brandon. Pleased to see they maintained their outperform rating and raised price targets. Now, that it is clear that the future success of this company is getting more and more good news from analysts with upgrades and rising price targets. Also I would expect upgrades in credit ratings as well with their improving debt situation.