UPDATE: Miller Tabak Color on Sirius XM Radio PT Increase
“We are slightly decreasing our Sirius XM Radio estimates to reflect 1Q11 results that missed expectations due to a higher mix of paid promotional subs and customer retention efforts,” Miller Tabak writes.
“SIRI is in healthy shape, with an expected $377 mm of Free Cash Flow generation this year, up from our prior $338 mm estimate (guidance is for $350 mm), but at the current price including the conversion of Liberty Capital's (NASDAQ: LCAPA) preferred, the stock is trading at a 2.7% FCF Yield, and 22.5x ‘11E EV/OIBDA, which is at a 1.3x premium to our 17.5% long-term OIBDA CAGR.”
Sirius XM Radio closed Wednesday at $83.07.
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