Analysts say XM will maintain lead in long term
Despite Sirius’ recent surge in subscriptions for due to Howard Stern, analysts say that XM will maintain a higher valuation in the long term for a variety of reasons including technology.
“Long-term, we still like XM over Sirius due to technology lead, stronger OEM relationships, and likely unsustainable valuation gap,” wrote analyst David Bank. “While Sirius is likely to maintain short-term momentum from the Stern launch … we don’t see how Sirius can continue to trade at premium to XM on an enterprise value basis with only about half the subscribers.”
The entire article is viewable at Forbes.com.
