Skip to main content

Market Overview

Sirius XM Confirms Growth In EBITDA and Subscribers/S&P Says Hold

Share:

By Relmor Demitrius

Sirius XM (NASDAQ:SIRI) issued a press release yesterday stating a return to subscriber growth from a 404,000 retail subscriber loss in the first quarter of 2009.  They had 171,000 net additions in Q1 of 2010.  They also stated a confirmation on guidance in revenue and EBITDA growth as on pace with estimates.  This means 20% growth in EBITDA and a high single digit growth in revenue is in play for this conference call coming up in May.  They must report by mid May according to their SEC filing requirements.

Based on this information S&P has reiterated its Hold rating on shares of Sirius XM.  S&P sees the 20% EBITDA growth and 7% growth in revenue as possibly conservative.  They see autos continue to rebound and this should bloster their subscriber numbers going forward.  S&P has been bullish the company since below 60 cents, yet hasn’t moved off its Hold rating. 

If you were to “Hold” on this stock any longer, it might be over $2 a share before these “market visonaries” get around to changing it to a buy. 

Janco Partners recently gave Sirius XM an upgrade to “Buy” and a price target move from 80 cents to $1.30.  This upgrade actually came before the press release from Sirius XM. 

These are the first reports and effects of the kind of quarter Sirius XM is expected to have.  Strong growth, steady revenue increases, and continued across the board cost cutting efforts are drawing a flame once again to shares.  Volume spiked strongly on the report, and shares rose from a close near 96 cents on Tuesday, to a high of 1.09 in AH late Wednesday.

Shares this morning in premarket have traded as high as 1.14 today, up over 5%.

Shares of Liberty Media’s tracking stock Liberty Capital (NASDAQ:LCAPA), which houses their 40% stake in Sirius XM was up modestly on Wednesday to $42.18.

 

Long SIRI

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

Related Articles (LCAPA + SIRI)

View Comments and Join the Discussion!