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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)

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From: i-node2/9/2006 8:21:50 PM
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S&P Boosts XM Satellite to Strong Buy
Analyst Tuna Amobi is thinks the company scored a coup with its Oprah signing.

XM Satellite Radio Holdings (XMSR) : Ups to 5 STARS (strong buy) from 4 STARS (buy)

Analyst: Tuna Amobi, CPA and CFA Advertisement

The satellite radio company was up sharply in pre-market trading on reports of a new exclusive three-year deal with Oprah. The new "Oprah & Friends" channel will debut September 2006, with broad original programming beamed from a new XM studio at Oprah's Harpo studios in Chicago. While financial terms were not released, we are impressed by the surprise signing of the talk show queen, with tie-ins to "The Oprah Winfrey Show" and "O" magazine. We see this as big coup against rival Sirius (SIRI), and believe Oprah's marketing appeal far exceeds Sirius's radio jock Howard Stern, who debuted last month. Our 12-month target stock price remains $36.
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