logo
  Join        Login             Stock Quote

Siris XM Radio (NASDAQ: SIR) Is A Red Hot Stock - Fred Dunsel (03/01/12)

 March 01, 2012 01:58 PM
 


Last Friday, satellite radio company Sirius XM Radio (NASDAQ:SIRI) closed at $2.20, marking a 2.56% gain for the week. Since the start of the year, the company stock has increased by 20.88%, continuing its rally since last October.

Earlier this month, Sirius XM met expectations on revenues and earnings per share. In 2011, the company posted net income of $427 million on revenue of $3b billion, although growth has been noted to have slowed. Sirius XM posted a profit of $71.3 million or 1 cent a share last year.

Sirius XM's subscriber base continued to grow, with 1.7 million added last year raising it to a total of 21.8 million. The company, which implemented its first-ever subscriber price increases last month, has acknowledged that it has seen a slight increase in the rate of customer losses. Because of this, the satellite radio operator, which gets most of its subscribers through new U.S. car sales, has given a conservative estimate of adding 1.3 million new subscribers this year.

[Related -Sirius XM Holdings Inc. (SIRI): Turning The Dial To $4.20 Per Share?]

Nonetheless, analysts remain optimistic about the company's prospects, with some seeing the stock reach $3 this year. Of the Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sirius XM is "outperform", with an average price target of $2.38. Bryan Kraft of Evercore Partners, who rated the stock as "overweight", said that the auto industry's recovery in 2012 and 2013 should also boost Sirius XM's growth prospects. James C. Goss, an analyst at Barrington Research, noted that Sirius XM "continues its progress in the key metrics that matter, including subscriber growth, conversion of trial subscribers to paying customers, revenue generation, moderating SAC (subscriber-acquisition cost) levels, EBITDA, free-cash generation improvement, and improving financial leverage ratios." Goss rated the stock as "outperform" with a 12-month price target of $3 a share. Citigroup analyst Jason Bazinet reiterated his "buy" rating for Sirius XM, while raising the target price to $2.50.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageREIT Yields In A Low-Rate Environment

If you’re pondering the allure of real estate investment trusts (REITs) these days, consider two attributes read on...

article imageA Nuanced Earnings Season

What can we glean from the latest earnings read on...

article imageMost Investors Will Miss This Powerful Buy Signal on Amazon's Chart

Amazon.com (NASDAQ: AMZN) may have disappointed shareholders Friday with another earnings miss, but all I read on...

article imageIs Now The Time To Buy Oil?

Stock exchanges are not alone in seeing prices pull back lately. In at least one case, however, that is read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.