Analysts Showing Some Sirius Love
Given the current share price of around $2.50, and with the current merger prospects, Sirius (SIRI) is now a must-own simply because it's well below its fair value of $4 a share by the average analyst.
Mad Money's Jim Cramer sees SIRI seeing $6 a share when the merger is complete.
Even more bullish is Citigroup analyst Tony Wible. He raised his 12 month price target on Sirius to $9.00 from $7.50 after hearing the news that the FCC Chairman is now in full support of the XM (XMSR) - Sirius merger. Wible also raised his near term price target of XMSR to $12.75 from $12, citing near term approval as the catalyst for the change.
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 now sees the merger probability at 90%.
Expect more analysts to up targets and ratings on Sirius.
Disclosure: Author holds a long position in SIRI
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This article has 13 comments:
Additionally, I think that there is a huge number of unsophisticated investors constantly buying and selling this stock with no discernable strategy: which is in turn making this stock price go bonkers.
I myself have had 2 margin calls over the past few months because of it. But I'm not sweating it because I know that my 10,000 shares in the next year will be valued well beyond what they are now.
If you need any further convincing that this is truly a good company, check out the balance sheet and see how the are getting progressively better year by year. Now on top of that, imagine how much better they will look post merger with more than double the subscribers and the absence of their biggest competitor (XM).
I don't know if siri is the company of the future like many is saying: A siri receiver in every ipod, computer, and phone which will also on day include tv along with radio. But I DO KNOW that there are profits to be made over the next year IF the merger is a go.
I can’t stress enough: HANG IN THERE!
Gentleman....this is a Market that moves on NEWS, bnot FACTS anymore! Some dip s... analyst can move the stock market by writing a cynical article that has no merit!
Everyone is out to get these companies because it's the trendy thing to do these days! When is someone going to be fearless and write something positive for once?
Oh, that's right...Positive news is boring news in most people's eyes these days! This whole thing is a Barnum and Bailey Circus that willl eventually come FULL circle for the better!
Just wait and see...
we should look at this as a sirius buying opportunity (pun intended). There are two companies in this space siri and xmsr. If you hold an xm position I would double think that. Merger or not they both lose earnings quarter after quarter, but, siri is in better shape. I believe without the merger xm goes under leaving a siri monopoly, or they merge again, siri monopoly. It's a win win, and if the merger gets denied we all know it will get appealed all day long. Honestly siri might perform better a year from now if they weren't laden with xm's broken junk all they got is baseball. Siri can woo mlb after they're gone.
I bought back in on Monday morning have been increasing my position in SIRI each day since the good news. I was hoping to make a quick buck off the few points I expected it to coast up in the afterglow of the good news. Now a big mistake - looks like I am stuck with SIRI again for the long run unless I wanna take a 20% loss... assuming it does recover... Boy am I now glad I didn't buy on margin as I was seriously considering. Thought this week was a sure uptick...
I haven't seen a stock with such vastly different outlooks in a while. Talk about a volatile stock - Citi has a price target with almost a 400% gain, GS has those who bought at 2.40 taking a loss of almost 50%....
The table is open - gentlemen place your bets!!!
first there's no competition, now there's too much.
there's too many folks who have nothing invested in Satellite radio trying to get something for nothing.
Georgetown Partners - how much money do they invested in the programming and satellites? I'm pretty sure I have more invested in this than they do. approve the merger and let Sirius and Xm compete with the Iopds and internet radio. And let the NAB figure a way to do something about terrestrial radio and all the problems it has.
I don't get it, the words of an ass whole and shit hits the fan, F___K GMS piece of shit, I can't beleive it gets to me like this.
Booha Mr.Cramer, Mad Money's Jim Cramer sees SIRI seeing $6 a share when the merger is complete.
Even more bullish is Citigroup analyst Tony Wible. He raised his 12 month price target on Sirius to $9.00 from $7.50 after hearing the news that the FCC Chairman is now in full support of the XM (XMSR) - Sirius merger. Wible also raised his near term price target of XMSR to $12.75 from $12, citing near term approval as the catalyst for the change.
Wible noted: