By Brandon Matthews
On the heels of Sirius XM Radio’s (NASDAQ: SIRI) fourth quarter and full year 2009 operating results, several key analysts have revised their targets for the satellite radio provider last week. The common denominator of all remains a position that Sirius XM should benefit from a recovery in the auto sector, and improved liquidity.
Standard & Poors’ Tuna Amobi raised his price target to $1.50 from $1.00, citing improvements in key metrics and favorable 2010 guidance of 7% revenue growth, over 500,000 net subscriber additions, 20% adjusted EBITDA growth and positive free cash flow. Amobi maintained his hold rating on SIRI shares.
Jim Goss of Barrington Research Associates, whom has been recognized as a four star analyst by StarMine for accuracy, maintained his outperform rating and revised his price target to $1.25 from $1.10. Goss noted better than expected revenues and lower operating costs which resulted in cash flow improvements. Goss sees Sirius XM’s guidance as conservative and projects 2010 EBITDA of $620 million. This is lower than initial guidance of $643 million due to adjustments in SAC and ARPU projections, yet well ahead of company guidance of $550 million.
RBC Capital’s David Bank issued a price target of .75, suggesting that Sirius XM is fully valued based on a fully diluted basis and factoring in Liberty Capital’s (NASDAQ: LCAPA) 40% equity stake. Bank noted that the bulk of Sirius XM’s revenue improvements are mostly attributable to faster than expected royalty pass throughs.
Position: Long SIRI
Hi Satwaves! I have been reading and following Siri and Siri related news for over a year now. You guys are great! I have also wanted to get involved in the comments however never did, just sat back, read learned and earned. I think that you should consider having RAF write with you guys. He has been correct for the past year on almost everything. His posts are refreshing and usually come to realization.
Anyway, we need a good article today and tomorrow to get is through this. I know thy it probably doesn’t matter if it closes over a dollar today and tomorrow in the long run, but irbid like a personal milestone for a lot of us. Get the message out, offset all of the negative “news” do it for us, your loyal listeners. Please!!!
There is a lot more I would like to say however we have 1 goal and 1 goal only today and tomorrow…..keep it above a dollar
Brandon – good report – stay long and the market will straighten it out. The analysts are obviously handling the information differently – they have no crystal ball – this is like predicting large group psychology (you can’t). This is a good product – with good leadership and a motivated ally in Liberty Capital. They own the market. I suggest that the analysts relisten to the LCAPA 4th qtr call – they talked about getting liquidity into Sirius and about their intent on the shares they own. So stay tuned and enjoy the ride.
Penny Stock once again. .97….yikes.
David Bank of RBC is a two faced hypocrite.Says one thing on one show than a totaly different thing on another show.