Analysts are all weighing in on the quarterly reports of XM (XMSR) and Sirius (SIRI). Some analysts are negative on the sector while others are positive. Price targets are established using various models, and differing assumptions are made by each analyst. Some analysts are basing their estimates on a merger, while others are still using stand-alone models.

The Estimate Roundup:

Wachovia - Sirius - Market Perform with a valuation range of $2.50 to $3.50
Wachovia - XM - Market Perform with a valuation range of $10.00 to $13.00
Stifel - Sirius - Buy with a price target of $4.00
RBC - Sirius - Sector Perform with a price target of $3.00
Cowen - Sirius - Outperform (stock expected to outperform the S&P 500)
Citi - Sirius - Buy/Speculative with a price target of $8
Goldman Sachs - Sirius - Sell with a price target of $2.25
Goldman Sachs - XM - Sell with a price target of $11.50
Merrill Lynch - Sirius - Neutral with a $3.11 price target in 2008 and a $3.37 price target for 2009

As you can see, some analysts are bearish and others are bullish, but the majority fall into a very neutral area. For many, the uncertainty of the merger has made changing a rating on these stocks more difficult. Compound that with company performances that could be rated as “okay”, and there is not much to get excited about. Simply stated, these stocks are all about the merger right now.