Sirius: Merrill Ups Rating; Sees "Imminent" Merger OK
Merrill Lynch’s Glen Campbell this morning raised his rating on Sirius Satellite Radio (SIRI) to Buy from Hold, while slightly trimming his price target to $2.70 from $2.80. Campbell says he expects “imminent approval” from the FCC for its pending merger with XM Satellite Radio (XMSR). Campbell says the upgrade reflects the recent decline in the stock and the upbeat post-merger guidance the company provided yesterday. The company sees $400 million in merger synergies, positive free cash flow before satellite cap ex and $300 million in EBITDA before stock compensation.