After Sirius XM Radio Inc. showed some significant improvements in their 2009 earnings, investment analysts expressed seeing a positive future for the company and its stock.
As Barton Crockett of Lazard Capital puts in, "what to do? ...stick with the BUY, and raise the price target to $1.35."
As Barton Crockett of Lazard Capital puts in, "what to do? ...stick with the BUY, and raise the price target to $1.35."
Crockett adds that the Used Car market "may be becoming a bigger growth driver than we'd thought."
Used cars are a market that we've seen a significant push on recently, with certified pre-owned deals now being offered on Ford, Chrysler, Acura, GM, Volkswagen, BMW, Mercedes, Audi, and Volvo.
Barrington Research too has upped its price target on SIRI, and maintains their "outperform" rating on the stock.
"The stock has already achieved the $1.10 target price we established at the start of the year," writes Barrington in a report issued following the earnings announcement. "We are raising our target price moderately to $1.25 based on our view that the improving fundamental metrics warrant a less extreme multiple-to-growth disparity than we had been assigning."
Obviously nothing is without its risks, as Lazard Capital notes in their report issued today, pointing to competition from Internet Radio and the "loss of key content, such as Howard Stern."
What do you think? Is the positive sentiment warranted, or short lived?
Used cars are a market that we've seen a significant push on recently, with certified pre-owned deals now being offered on Ford, Chrysler, Acura, GM, Volkswagen, BMW, Mercedes, Audi, and Volvo.
Barrington Research too has upped its price target on SIRI, and maintains their "outperform" rating on the stock.
"The stock has already achieved the $1.10 target price we established at the start of the year," writes Barrington in a report issued following the earnings announcement. "We are raising our target price moderately to $1.25 based on our view that the improving fundamental metrics warrant a less extreme multiple-to-growth disparity than we had been assigning."
Obviously nothing is without its risks, as Lazard Capital notes in their report issued today, pointing to competition from Internet Radio and the "loss of key content, such as Howard Stern."
What do you think? Is the positive sentiment warranted, or short lived?
Id like to think this rally can continue. There are a few issues still facing siriusXm though.
We know no major debt until around 2012 but the dilution of shares is hurting them.
I dont know that its posible but id like to see them be able to get some of that 40 percent stake that malone has back.
Id also like to see siriusXm do stock buy back but this isnt something they can do in the short term either.
I have a hard time seeing this stock go much more than 1.50 for the next couple of years for the reasons mentioned above.
One writer seemed to believe the correct valuation on this stock was .26 cents. Id have to say siriusXm isnt a stock that has ever really traded on valuation but again its easy to see how hard it would be for this stock to be worth much more than 1.50 until debt and dilution has been resolved.
Surely the company is headed in the right direction and has a bright future and surely this is a good stock if youre in it for the long haul. Short term though i see it trying to hold around a dollar.
Mel Haters of the world...time to bend over and kiss his A$$!
I do not think the analysts are fully valuing the $6 billion in NOL that Sirius has to avoid taxes. The other big issue is the clout of Liberty (no chance of them diluting the common per comments at their earnings conference) & a very real possibility of ROW expansion. Why is Malone buying WorldSpace if not to team it with Sirius & profit from the synergies?? I feel there is a good chance of $2 by the end of 2010.
Pro Forma vs. GAAP Numbers
When a company reports pro forma numbers as the basis for saying anything about its financial condition, rational investors should and do run. Pro forma means nothing more than "as if." SiriusXM is doing well "as if" its debt didn't exist. The company made a Q4 profit, but only "as if" you ignore the losses.
My bet is the accurate valuation is $0.26. And that may be a quarter too much.