Barrington analyst Jame Goss reiterated his outperform rating as well as his $0.70 price target on Sirius XM Radio today. On the heels of the company release, Goss noted that his estimates for the quarter call were a loss per diluted share of $0.01 on revenues of $610.9 million. As the numbers were released, Goss's expectation were obviously met. Prior to the call Goss had his full year estimate at a loss per diluted share of $0.10.
Goss believes that the majority of the issues surrounding Sirius XM’s capital structure (and more specifically, its debt) have been situated, Sirius XM is now able to return its focus to operational efficiency and increasing cash flow generation. The call today proves that Goss's assumptions were correct.
Goss sees a favorable swing in EBITDA of more than $500 million into positive territory this year. Company guidance is currently for over $400 million. With the company hitting on many metrics, it is no surprise that Goss reiterated his outperform rating and $0.70 price target even prior to the call.
Those that thought Goss was overly bullish in his last report should at this point be having second thoughts. It would not surprise me to see Goss increase his price target considering that the company is already to the halfway point on his more aggressive $500 million EBITDA projection.
Tyler Savery Position - Long Sirius XM Radio