By Demian Russian
With a new research report issued today, Maxim Group Senior Media Analyst John Tinker reiterates his BUY rating on Sirius XM Radio (NASDAQ:SIRI) and raises his price target on the equity from $3.20 to $3.35.
Impressed with Sirius XM’s Q2 performance and noting the quarter’s “strong net subscriber additions,” Tinker notes that Sirius XM has already reported 1,026,638 net new sub adds in the first half of the year, which suggests that Sirius XM management is effectively offering guidance towards only 573,362 net new sub adds in the second half of the year — which would translate into a 35% decline in subscriber growth on a year-over-year basis. “This is conservative, in our opinion, as the company has reported strong new sub add numbers in the first half of 2012, despite price increases having been introduced to ~50% of self pay subscribers,” Tinker said. Read More
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