Citigroup Analyst Bullish
Wible is among the more bullish of the analysts following the sector. Likely, given that it appears that the merger issue will go into a draft order status at the FCC, several analysts will be weighing in with their opinion. At this point Wible is the early bird.
Wible noted, “We continue to believe that spectrum concessions represent the key hurdle that could torpedo the deal. Advocates and other public interest groups had been pushing for up to 20%. In our view, 8% represents a far more palatable request and one that is more amendable to both companies.”
The analyst sees merger probability at 90%
Position – Long Sirius, Long XM
Man Tyler, this Citi analyst is bullish as hell. Gotta love it when they really go out on a limb like that. Hope he is right.
Very bullish indeed. This analysys will set a bar of sorts for others to compare to. While most analysts tend to be conservative this one tends to understand that Mel K. underpromises and over delivers.
Citi has little credibility and with people like Goldman suggesting that Siri’s value is 2.25, Citi looks plain silly.
When 71 million shares trade and the stock goes up a whopping .08, I tend to side with GS.
Tyler, for those of us owning xm options, specifically LEAPs. When the merger goes through, those options get turned into siri options at adjusted strikes?
>>>As a result of recent news surrounding the merger of Sirius and XM, Wible has adjusted his 12 month price target on Sirius to $9.00 from $7.50. Wible also raised the near term price target of XMSR to $12.75 from $12, citing near term approval as the catalyst for the change.<<<
Siri 1-year target; XM near-term target. Presumably, I assume it’s a short term target for XM as XM will cease to exist after the pending merger is done.
convert Siri’s 1-year target to an XM 1-year target, assuming merger approval, and you have $9.00 x 4.6 share exchange ratio = $41.40!