XM, Sirius Surge Again

The satellite radio players each add 6% after some pivotal brokerage upgrades.
By TSC Staff ,

Satellite radio stars

Sirius

(SIRI) - Get Report

and

XM Satellite

(XMSR)

sparkled for a second straight day, each rising 6% on the usual mix of dealer linkups, brokerage upgrades and speculative froth.

On Tuesday, UBS upgraded both stocks to buy from neutral, and Friedman Billings Ramsey and RBC Capital Markets each upgraded XM to outperform.

The rise in the heavily traded shares came a day after XM sparked a sharp rally in both players by

boosting its monthly fee by 30%. Fans warmed to that news because they believe XM and Sirius provide a valuable service that users will gladly pay a premium for.

Both companies have been posting steep losses as the costs of acquiring users and programming have far outweighed modest subscription revenue. Still, shares in both companies have risen sharply since XM and Sirius burst onto the tech scene in 2002.

Sirius on Tuesday goosed its shares by signing a deal to put its radios in certain Volvo models. The New York pay radio shop said the 2005 Volvo S80, S60, V70 and XC70 would be available with optional dealer-installed Sirius radios. Sirius said that for a limited time, Volvo would reimburse customers for subscription costs.

Early Tuesday, Sirius rose 35 cents to $5.92, and XM added $2.09 to $35.05.

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