Goldman Sachs Murders Sirius & XM (SIRI, XMSR)

Goldman Sachs has been negative on Sirius Satellite Radio Holdings Inc. (NASDAQ: SIRI) and on XM Satellite Radio Holdings inc. (NASDAQ: XMSR) on a basis that is with or without the companies merging together.  Today’s call is whacking these shares.

The firm has slashed its 6-month price targets for XMSR to $6.50 from $11.50 and on SIRI shares to $1.75 from a prior $2.25 target.

Goldman Sachs has reiterated its SELL ratings and CONVICTION SELL LIST on both stocks and is cutting its 2009 estimates for the company.  On Sirius, the firm has a loss expectation of -$0.36 for 2008, but for 2009 it cut estimates from -$0.25 EPS down to -$0.26 EPS.  On Xm it has -$1.75 EPS for 2008, but for 2009 it has widened its estimates to -$1.26 EPS from -$1.20 EPS.

Shares are getting hit on this news today.  In pre-market trading Sirius shares are down some 7% at $2.26, and that is going to be a 52-week low under  the prior $2.36 low.  XM shares are down some 8% pre-market at $9.55, which is also under the $98.62 lows over the last year.

Jon C. Ogg
June 19, 2008

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