skyreport.com
Analysts Tackle XM, Sirius
Shares for the two DARS players, Sirius Satellite Radio and XM Satellite Radio, have tumbled from their recent highs, which according to one analyst creates an ideal time to buy their stock.
"We believe that this drop presents a buying opportunity for DARS companies," Banc of Securities' Armand Musey said. He added that both companies are trading below their price targets, which are $68 for Sirius and $62 for XM.
William Kidd, an analyst at C.E. Unterberg Towbin, said Sirius remains his top satellite pick. He rates the stock a Strong Buy with a $100 year-end price target.
"Our confidence in Sirius shares is founded on our unwavering belief in the satellite-radio opportunity and business model," he said. "Simply, in a broadcast capacity, satellites have no terrestrial equal, making them the most inexpensive means of reaching a nationwide customer base the size of the U.S, as DBS companies have well proven."
Kidd cautioned that Sirius' share performance is contingent upon successfully launching satellites this year. "Therefore, we consider Sirius shares best suited for risk-tolerant investors," he said.
Meanwhile, Hughes Network Systems signed an equipment supply contract with XM Satellite. The deal, valued at $115 million, calls for HNS to provide system development and manufacturing of XM's terrestrial repeater equipment.
HNS' parent, Hughes Electronics, has a stake in XM Satellite. |
