Some interesting stuff out from Citigroup today as analyst Eileen Furukawa said in a report to clients (Linkage: PDF, 500k) that "satellite radio is one of the few growth stories in media."
"In our view, satellite radio is one of the few areas within the media sector that offers attractive secular growth," Furukawa said. "The industry has already experienced robust growth from 4.4 million subscribers at the end of 2004 to our estimate of 9 million by the end of 2005."
Interesting thing to note is that they compared XMSR to AOL back-in-the-day when they were first launching. If you use AOL's peak valuation multiple when it was first ramping up subscribers, XMSR would be valued at $270. Good lord man! (Linkage: XMSR Image - 150k)
(Note: my Acrobat keeps blowing up on me whenever I try to open the PDF, so please let me know if it doesn't work or something.)
Leave a comment