The Cunning Linguist :Þ- Cmdr. Usenet OperAtions
February 21st, 2006, 01:31 PM
XM's Retail Share Seen Trending Up
Kate DuBose Tomassi, 02.17.06, 2:49 PM ET
Banc of America Securities analyst Jonathan Jacoby lowered the price target
on XM Satellite Radio to $33 from $36, citing the recent resignation of
board member Pierce "Jack" Roberts.
Roberts had resigned over cost concerns, saying there is "a significant
chance of crisis on the horizon" for XM (nasdaq: XMSR - news - people ).
Nevertheless, the Banc of America analyst reiterated a "buy" rating on XM
stock. He cited positives that he says have been overlooked. He expects
expenses to drop in the first quarter of 2006 and expects market share to
trend up as the Stern effect wanes for Sirius Satellite Radio (nasdaq:
SIRI - news - people ).
The analyst recommended investors buy XM stock while it is at depressed
levels. "We have little doubt that the competitive nature of this business
has changed long-term value, but at these levels the concerns are more than
discounted, in our opinion," he said.
He also said he expects XM to benefit from Oprah Winfrey in the
fourth-quarter of 2006. This month, Winfrey signed a deal with XM to produce
her own radio programming.
Kate DuBose Tomassi, 02.17.06, 2:49 PM ET
Banc of America Securities analyst Jonathan Jacoby lowered the price target
on XM Satellite Radio to $33 from $36, citing the recent resignation of
board member Pierce "Jack" Roberts.
Roberts had resigned over cost concerns, saying there is "a significant
chance of crisis on the horizon" for XM (nasdaq: XMSR - news - people ).
Nevertheless, the Banc of America analyst reiterated a "buy" rating on XM
stock. He cited positives that he says have been overlooked. He expects
expenses to drop in the first quarter of 2006 and expects market share to
trend up as the Stern effect wanes for Sirius Satellite Radio (nasdaq:
SIRI - news - people ).
The analyst recommended investors buy XM stock while it is at depressed
levels. "We have little doubt that the competitive nature of this business
has changed long-term value, but at these levels the concerns are more than
discounted, in our opinion," he said.
He also said he expects XM to benefit from Oprah Winfrey in the
fourth-quarter of 2006. This month, Winfrey signed a deal with XM to produce
her own radio programming.