Goldman Sachs Murders Sirius & XM (SIRI, XMSR)

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By Douglas A. McIntyre Published
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Goldman Sachs has been negative on Sirius Satellite Radio Holdings Inc. (NASDAQ: SIRI) and on XM Satellite Radio Holdings inc. (NASDAQ: XMSR) on a basis that is with or without the companies merging together.  Today’s call is whacking these shares.

The firm has slashed its 6-month price targets for XMSR to $6.50 from $11.50 and on SIRI shares to $1.75 from a prior $2.25 target.

Goldman Sachs has reiterated its SELL ratings and CONVICTION SELL LIST on both stocks and is cutting its 2009 estimates for the company.  On Sirius, the firm has a loss expectation of -$0.36 for 2008, but for 2009 it cut estimates from -$0.25 EPS down to -$0.26 EPS.  On Xm it has -$1.75 EPS for 2008, but for 2009 it has widened its estimates to -$1.26 EPS from -$1.20 EPS.

Shares are getting hit on this news today.  In pre-market trading Sirius shares are down some 7% at $2.26, and that is going to be a 52-week low under  the prior $2.36 low.  XM shares are down some 8% pre-market at $9.55, which is also under the $98.62 lows over the last year.

Jon C. Ogg
June 19, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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