Will Sirius (SIRI) Exceed Its EBITDA Guidance?
Bank of America initiated coverage on Sirius XM Radio Inc. (NASDAQ: SIRI) with an Overweight rating.
The favorable attributes of Sirius include 1) a subscription-based business that has permitted the company to weather the economic downturn 2) a sizeable subscriber base 3) a relatively small (less than 10%) penetration rate of the entire domestic automobile base 4) a credit trajectory at a favorable inflection point and 5) strategic asset value.
Bank of America believes Sirius will comfortably exceed its initial 2009 EBITDA guidance of $300 million.
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