Banc Of America Cuts Sirius Satellite To Sell From Neutral
8:13 AM EST December 13, 2005
NEW YORK (Dow Jones)--Sirius Satellite Radio (SIRI) was downgraded to sell from neutral at Banc of America, citing concerns over valuation, particularly relative to its rival XM Satellite Radio (XMSR).
The stock recently was down 1.8% to $7.33 in premarket trading.
While analyst Jonathan Jacoby expects strong subscriber growth over the next couple quarters because of the arrival of Howard Stern and the rollout in Ford, he believes the valuation gap with XM Satellite will eventually correct itself - Jacoby noted that XM's equity valuation is 20% less than Sirius' - as it has done in the past.
Jacoby raised his customer churn estimate to 2% from 1.5%, lowered his 2006 net subscriber addition forecast to 3.1 million from 3.2 million, and cut his stock price target to $5.50 from $6.
(END) Dow Jones Newswires
8:13 AM EST December 13, 2005
NEW YORK (Dow Jones)--Sirius Satellite Radio (SIRI) was downgraded to sell from neutral at Banc of America, citing concerns over valuation, particularly relative to its rival XM Satellite Radio (XMSR).
The stock recently was down 1.8% to $7.33 in premarket trading.
While analyst Jonathan Jacoby expects strong subscriber growth over the next couple quarters because of the arrival of Howard Stern and the rollout in Ford, he believes the valuation gap with XM Satellite will eventually correct itself - Jacoby noted that XM's equity valuation is 20% less than Sirius' - as it has done in the past.
Jacoby raised his customer churn estimate to 2% from 1.5%, lowered his 2006 net subscriber addition forecast to 3.1 million from 3.2 million, and cut his stock price target to $5.50 from $6.
(END) Dow Jones Newswires
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