‘Too much hype and expectation’ has surrounded Sirius Satellite R...
“Too much hype and expectation” has surrounded Sirius Satellite Radio’s deal with shock jock Howard Stern, Banc of America Securities analyst Jonathan Jacoby said in a report released Tues. He downgraded his rating on Sirius to “sell,” and shares…
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of the company fell 29 cents (3.5%) to $7.81 by the end of regular trading Tues. Sirius also signed an agreement recently with NFL, but analysts don’t expect the company to be profitable in the near term. Jacoby advised clients to capitalize on competitor XM’s expected subscriber growth. That company is counting on deals with several automobile manufacturers and plans to air Major League Baseball games (CD Dec 1 p14). XM shares also slid 84 cents (2.1%) to $38.89 on Tues. Despite XM’s lead, Sirius continues to gain retail share and Jacoby said he expects the company’s 4th quarter share to increase to 45%, from 38% in the 3rd quarter. In the report, he raised his price targets for XM to $44 from $37 and for Sirius to $5.25 from $3.68. Jacoby also said his firm has a proprietary potential customer survey in the works to help them better determine long-term projections.