Zacks Investment Research upgraded shares of SIRIUS XM Radio Inc. (SIRI) from NEUTRAL to OUTPERFORM on July 17, 2012, with a target price of $2.50.
We upgrade our recommendation on SIRIUS XM Radio to Outperform based-on its record-high net subscribers' addition in the second quarter of 2012. This improved performance was mainly due to strong management execution on the back of rising auto sales. We expect the company to improve in several other operational metrics, including adjusted EBITDA, free cash flow, and further penetration in the U.S. auto sector, in the second quarter. Despite price rise of its services, SIRIUS XM has generated record-breaking net subscribers' growth in the last two successive quarters. Solid conversion rate and effective marketing strategy helped the company to achieve this milestone. Management predicted that this momentum will further intensify in the rest of fiscal 2012 and accordingly raised its prior guidance for fiscal 2012 revenue and net subscribers' growth. Further, Satellite Radio 2.0 services will also boost its future financials.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on SIRIUS XM Radio Inc. (SIRI),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment