Filed under: Analyst upgrades and downgrades, Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI)

Sirius Satellite Radio (NASDAQ: SIRI) and XM Satellite Radio Holdings (NASDAQ: XMSR) have finished the day down 4.29% and 5.53% respectively following a downgrade to Neutral from Buy at UBS. UBS analyst Lucas Binder lowered his FY 2008 loss per share estimates for Sirius to $0.42 from a $0.40 but upped the price target to $3.90 from $3.75. XM fared a little better as Binder increased his estimate of loss per share to $1.61 from $1.68 and moved his price target to $16 from $15. The analyst believes the current stock prices reflect most of the fundamental upside.

Well, some investors may look at today’s declines as an opportunity to get into the stocks. I wouldn’t. It may be worth nothing that while both radio companies are valued nearly always similarly, many favor Sirius, saying it can only come out a winner regardless of how the dice rolls on the proposed merger of the two. Should the merger go through, all the better; if it doesn’t, then Sirius is the faster growing and the better positioned one of the two.

Continue reading Sirius (SIRI) and XM (XMSR) hit by a downgrade

Permalink | Email this | Comments

Share This

This entry was posted on Wednesday, September 19th, 2007 at 10:21 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.