Sirius XM Radio Inc (NASDAQ:SIRI) has been upgraded to outperform
rating after the Company’s reaffirmation of its FY 2012 revenues and raising of
its FY 2012 EBITDA estimate.
Is SIRI a Buy After Recent Rebound? Get Technical
Analysis
The broadcasting service provider has been reporting
solid net subscribers’ addition since the last two quarters that
can be linked to this year’s high auto sales. Recently, the management declared
that SIRIUS XM added 622,042 net subscribers at the end of the second quarter
which is a growth of 37.6% yoy. The Company ended the last quarter with a
record high total subscriber base of more than 22.9 million on the backdrop of
increasing prices for its services.
Sirius broadcasts on a subscription fee basis through its two
satellite radio systems. As the number of vehicle sale have increased in the
first half of the year and the estimated vehicle sales being on the upside,
Sirius’s subscriber base is expected to maintain the growth.
How Should Investors Trade SIRI at CMP, Find Out
The
Company reports its second quarter results on August 7, 2012 and had guided for
increase in its subscriber base to increase by 1.6 million as compared to the
previous guidance of 1.5 billion subscribers. Similarly,
the revenue guidance for fiscal 2012 has been raised to $3.4 billion from its
earlier guidance of $3.3 billion.
SIRI
is up 12% in the last one month and ended the week at $2.10 after trading hands
on high volume of 44.16 million shares. Its 52-week trading range is
$1.27-$2.41.
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