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
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
