On the heels of Sirius Satellite Radio issuing post merger guidance, and a sharp decline in price after the Goldman Sachs analysis, Merrill Lynch analyst Glen Campbell has raised their rating to BUY with a PO of $2.70 per share, a 20% discount from their YE09 DCF value of $3.42/share.
The analysts cautions the short term on weak OEM and subscriber numbers, but feels that these issues carry only a minor impact on long term values. Also noted by the analyst was the fact that the guidance issued by Sirius is more bullish than their own, but that the issue seems to center on timing of synergies.
Merrill Lynch sees merger approval happening in the near term.
Position - Long Sirius, XM.