SIRIUS XM Radio (SIRI) - Bear of the Day

We downgrade our recommendation for SIRIUS XM Radio (SIRI) to Underperform following the emergence of alternative technology of commercial-free Internet radio and extremely poor financial condition of the company.

According to our view, SIRIUS XM's business model is going to face serious competition from the upcoming
subscription-free Internet radio programming that will automatically customized to one's personal tastes. In addition, continuation of the global economic downturn, particularly the slowdown in the auto industry, remains a cause of concern.

We did not find any growth catalyst that may result in upward movement of the stock price in the near-term. Our price target ticks down a penny to 64 cents per share.Zacks Investment Research