Goldman Sachs has panned satellite radio stocks and maintained a cautious "Sell" on XM Satellite Radio (XMSR). What is interesting is that Goldman Sachs has also noted that its channel checks have indicated that it now appears "less likely that the DOJ will block the merger" with Sirius Satellite Radio (NASDAQ: SIRI). But it also believes that deal or no deal, XM/Sirius shares would run up and mark near-term highs just like last year when the merger was announced.
This note even says that merged or un-merged, Goldman Sachs outlook for cautious based on unrealistic cash flow expectations.
Earlier this week we also saw Stanford indicate how it believes a merger approval from the DOJ is likely imminent.
Jon C. Ogg
February 15, 2008