by Demian Russian
Janco Partners Senior Media and Entertainment Analyst Martin Pyykkonen will be weighing in on Sirius XM Radio (NASDAQ: SIRI) in an exclusive, live interview on Playground Radio — tonight (July 28th) at 8:00PM Eastern. Janco Partners currently has a BUY rating and a $1.30 price target on SIRI. Mr. Pyykkonen upgraded Sirius XM to BUY last April, and raised Janco’s price target from .80 to $1.30, based on a 12x 2011 EBITDA estimate of $687 million. His 12x EBITDA multiple target includes Liberty Media’s (NASDAQ: LCAPA) stake in Sirius XM, which amounts to a 6.5 billion fully diluted share count.
According to Mr. Pyykkonen’s upgrade report last April, he was “conservatively” estimating $140 million in FCF for 2010, less than the $185 million in FCF the company reported for full-year 2009. While estimating FCF from the high teens to mid 20’s for 2011-2013, Pykkonen explained that his more conservative guidance for 2010 allowed for “unforseen timing related to working capital changes.” He estimated Sirius XM’s EBITDA growth would continue to outpace revenue growth throughout 2011.
Martin Pyykkonen
Martin Pyykkonen is currently a Senior Analyst at Janco Partners where he is covering the Internet, Media and Entertainment sector. He has been covering the sector for six years and is a frequent guest in the public media on his stock coverage. Martin’s current coverage includes Google, Yahoo!, Time Warner, Disney, CBS, Viacom, News Corporation, Discovery and Scripps Networks. Prior to covering Internet, Media and Entertainment stocks, Mr. Pyykkonen was a senior analyst covering the Telecommunications Equipment sector for eight years, primarily at CIBC World Markets and Furman Selz.
Mr. Pyykkonen’s career has also included ten years as a management consultant at Price Waterhouse and Arthur D. Little where he worked for leading companies in several high tech industries. Martin holds an MBA degree from Boston University and a Master of Science degree in Electrical Engineering from Northeastern University.
In tonight’s interview, Mr. Pyykkonen will be discussing his thoughts on Sirius XM’s pre-announced Q2 subscriber metrics, what Liberty Media’s future plans may be, Howard Stern’s upcoming contract negotiation, and what to look for when Sirius XM reports Q2 results on August 4th.
Playground Radio can be heard live every Wednesday night at 8:00PM Eastern. After the interview with Martin Pyykkonen, callers will be welcomed to join the discussion at (347) 934-0239. Previous episodes of Playground Radio are also available to be streamed and downloaded as an Mp3 file or via iTunes. Further information about Playground Radio can be found at the Playground Radio Home Page. Tonight’s episode of Playground Radio can be heard live at the following link:
Position: Long SIRI
Contact the Author: demianrussian@satelliteradioplayground.com
Just listened to the replay. Excellent interview. Really good.
And listening to Newman trying to say intricacies topped it off!
Well done.