Satellite Radio & Competing Technologies Message Board

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Technology Stocks : Satellite Radio & Competing Technologies

SIRI 21.70

-6.4%

Oct 31 3:59 PM EST

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To: i-node who wrote (147)	4/26/2005 11:26:37 AM
From: i-node	Read Replies (1) of 180

More BOA Info Banc of America Securities reiterated a "buy" rating and $42 target price on XM Satellite Radio (nasdaq: XMSR - news - people ), saying the company is better funded than rival Sirius Satellite Radio (nasdaq: SIRI - news - people ) for a potential hardware pricing war. The research firm said both companies are set to engage in their heaviest-ever promotions in May and June. "We expect Sirius to be more aggressive and have a product agnostic promotion, while XM should be more subscriber-driven," Banc of America said. The research firm said XM has the lead in terms of economies of scale and technology. "Business trends remain strong for XM," Banc of America said. "We would be buyers of XM stock on any weakness." The research firm said Sirius currently lags XM in terms of long-term profitability per subscription. In 2005, Sirius is expected to add subscriptions at an economic loss of about $300 per subscription, while XM should create $35 of value per subscription, according to Banc of America. The research firm reiterated a "neutral" rating and $5.50 target price on Sirius.

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