XM Seen Topping Sirius In 2006

Discussion in 'Mobile Phones / Entertainment' started by Ronald Epstein, Jan 13, 2006.

  1. Ronald Epstein

    Ronald Epstein Administrator

    Jul 3, 1997
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    XM Seen Topping Sirius In 2006


    S.G. Cowen research analyst Tom Watts recommended investors purchase shares of XM Satellite Radio, expecting continued market expansion to drive share price through 2008.

    "We continue to believe subscription estimates will rise, supporting further stock price appreciation," wrote the analyst in a research note Friday.

    Watts expects XM shares to outperform Sirius Satellite Radio (nasdaq: SIRI - news - people ) over the next 12 to 18 months, but recommends investors purchase both.

    Watts believes XM (nasdaq: XMSR - news - people ) is creating a content portfolio that appeals broadly to mainstream interests, with several top 20 nationally ranked channels and 14 million daily listeners.

    XM's revolutionary handhelds, Connect & Play line, and Passport line underscore the company's technology lead, Watts said.

    In addition, XM is signing up record subscribers who "sample" the service via Hertz, DirecTV (nyse: DTV - news - people ) and other marketing partners, the analyst reported. He expects similar trial opportunities with Time Warner (nyse: TWX - news - people ) AOL, Hyatt and JetBlue Airways (nasdaq: JBLU - news - people ) to drive further subscriber growth.

    Watts' current long-term estimates project XM to have 41 million subscribers by 2015 and 24 million by 2010, or 20% above guidance

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