UBS Financial Upgrades Sirius

Analyst Lucas Binder says the satellite radio company's upcoming Ford and DailerChrysler installs and Howard Stern will drive subscription growth

UBS Financial upgrades Sirius Satellite Radio (SIRI ) 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.

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