) to buy from neutral.
Analyst Lucas Binder says he thinks fears over first-quarter 2005 seasonality reflected in stock, still expects Sirius to achieve its 2005 subscriber target of 2.5 million (he expects 2.55 million subscribers).
While first-quarter 2005 was a seasonally weak quarter, he thinks the introduction of Ford and DaimlerChrysler installs later this year and Howard Stern will drive subscription growth through 2005. He expects the second-half of 2005 will represent more stable growth and outlook. He has $6.50 target.
While Binder believes 21% potential upside represents an attractive buy opportunity, he notes the volatile nature of Sirius equity in the near-term will likely continue to impact shares.