From Standard & Poor's Equity Research
Lehman Brothers upgraded Sirius Satellite Radio (SIRI
) to overweight from equal-weight, explaining that the stock has traded down in sympathy with XM Satellite Radio Holdings (XMSR
) for no justifiable reason.
Analyst Vijay Jayant doesn't think the move was justified because material XM Satellite headlines have been company-specific, not sector-general. He says the headlines that have hurt XM Satellite have not changed his long term view of the satellite radio industry. He believes weakness has created buying opportunity, and he would be an aggressive buyer of both satellite stocks at these levels. He raises his stock price target to $6.50.