Savery Reiterates "Fairly Valued" Rating
Savery Reiterates "Fairly Valued" Rating, $1.10 Price Target
Posted 06 October 2010 - by SRK
Category - Sirius XM Stock Talk
In a research note issued this morning, Sirius Buzz Capital Markets analyst Tyler Savery maintained his FAIRLY VALUED rating and $1.10 price target on Sirius XM (NASDAQ: SIRI). In response to Sirius XM raising their full-year 2010 net subscriber addition guidance last Friday and more robust auto sales than had been previously assumed, Savery is now modeling for 583,000 net subscriber additions in the third quarter. Savery did not, however, raise his $1.10 price target due to "valuation and competitive landscape concerns."
“I have stated multiple times that I think SIRI is fairly valued at $1.10. SIRI enjoys a high multiple right now. What part of that do you not comprehend? In Q2, when similar auto sales numbers were delivered , the company announced 583,000 net additions to the subscriber roles. Q3 should deliver a similar number, however, the Pandora’s of the world are getting to use the freeway while Sirius XM is on the toll road.”
– Tyler Savery, Sirius Buzz Capital Markets
Please tune-in next Tuesday night for a special "The Roc Says" edition of Sirius Buzz Radio in which Charles LaRocca will interview Tyler Savery on his latest research note and all-things-Pandora. Sirius Buzz readers are invited to call-in and break Tyler's balls.