March Auto Sales Positive for Sirius XM
by: Satwaves March 21, 2010
By Brandon Matthews
Preliminary March auto sales data is giving Sirius XM Radio (Nasdaq: SIRI) investors reason to celebrate, as good news continues to flow surrounding the company. According to Edmunds.com, the SAAR rate for March is now running at an astonishing 13.2 million vehicles. Edmunds attributes the spike to successful incentive plans that seem to be attracting car buyers whom have been sidelined during the recession.
The numbers are higher than anyone has anticipated. JD Power is reporting that through the first eleven selling days of March, 883,300 vehicles were sold. To put this in perspective, that number already exceeds the total monthly numbers posted in January and February of this year. March has a total of 26 selling days, which could mean that monthly auto sales could reach between 1.5 -2 million vehicles.
JD Power is projecting an annual rate of 12.2 million units, which by far exceeds analyst projections when forecasting Sirius XM Radio’s growth. Earlier this month, Wunderlich Securities Analyst Matt Harrigan suggested that Sirius XM shares would be valued at $1.85 based on a 12 million unit run rate, more than double SIRI’s current price.
Satwaves will present a live exclusive interview with Jessica Caldwell of Edmunds.com on next week’s Satwaves Radio show, who will offer listeners a first look at Edmunds’ monthly forecasts, which are historically the most accurate forecasts in the industry.
