http://www.forbes.com/2006/04/06/sir...s13_print.html Market Scan Sirius Could Snatch Lead From XM With New Products Maya Roney, 04.06.06, 6:07 PM ET Bear Stearns maintained an "outperform" rating and $9 price target on Sirius Satellite Radio after meeting with the company's president of Operations and Sales Jim Meyer on Tuesday. The analyst said Sirius management is focused on delivering more features and enhanced services to consumers, while it critically evaluates the business case of each decision with regard to free-cash-flow goals. In the meeting, Meyer reiterated that Sirius would have a wearable product capable of receiving live radio available during the summer. The radio is expected to include MP3 playing functionality in addition to offering consumers the ability to purchase songs. Sirius believes that availability of memory on the receivers has the potential to transform the industry, just like DVRs. Meyer also said XM Satellite Radio's technological lead is likely to decline in the foreseeable future with each new generation of chipsets. He expects the gap in terms of receiver size and features to narrow significantly by the holiday selling season in the fourth quarter of 2006. "We think Sirius’ recent R&D spending has been directed towards developing new products and services that could help it wrest the initiative from XM," said Peck. The analyst also has an "outperform" rating on XM.