UPDATE: Barrington Research Raises PT to $3.75 on Sirius XM Radio on CRB Ruling
Barrington Research reiterated its Outperform rating on Sirius XM Radio (NASDAQ: SIRI) and raised its price target from $3 to $3.75.
Barrington Research noted, "The Copyright Royalty Board Issued its Ruling as to Satellite Radio Royalty Rates for the Next Five Years: Specifically, in its ruling dated December 14, 2012, the CRB determined that royalty rates currently at 8.0% would be adjusted to be 9.0% of gross revenues for 2013 and rise by 50 bps per year to an ultimate level of 11.0% in 2017. … Having this issue settled is important from an investor standpoint. The ruling provides each party with a positive, given that there is an actual increase for SoundExchange, but the movement off of status quo is not so burdensome that it will derail the fundamental financial progress of Sirius XM Radio."
Sirius XM Radio closed at $2.91 on Friday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.