Wachovia upgrades Sirius Satellite Radio (SIRI) to market perform from underperform.
Analyst Jeffrey Wlodarczak says Sirius has undergone an extraordinary transformation in the last few months, from a company teetering toward bankruptcy, to arguably a company that in some respects is on an equal footing with XM Satellite Radio.
He reiterates that XM Satellite erred in allowing Sirius to get Howard Stern at an attractive price, which led to an immediate capital infusion and now the signing of Mel Karmazin as CEO.
Wlodarczak says the question is can Karmazin morph from an advertising sales/cost slasher to a big spend subscriber grower. He raises his $2.50 to $3.00 valuation to $4.50 to $5.50.