NEW YORK (TheStreet) -- Satellite radio broadcaster Sirius XM (SIRI) strengthens its position in the automobile market through its acquisition of Agero's connected vehicles unit and partnerships with major automakers.
Speaking at the Deutsche Bank Leveraged Finance Conference last week, CFO David Frear said the $530 million Agero deal, expected to close by the end of 2013, will solidify Sirius' relationships with original equipment manufacturers (OEMs) which develop Sirius-enabled equipment for vehicles.
Sirius XM has deals with automakers including General Motors (GM), Mercedes and Ford (F) to have factory-installed Sirius-enabled equipment in car models. Sirius XM says it is installed in more than 50 million vehicles.
CEO Jim Meyer is expected to elaborate on the company's strategy at Liberty Media's 2013 Investor Meeting on October 10. The company will report third-quarter earnings on Oct. 28.
Sirius XM shares closed 2.78% lower to $3.85 on Tuesday, symptomatic of a selloff in the technology sector provoked by political uncertainty in Washington. The company lagged the S&P 500 which was down 1.23%.
TheStreet Ratings team rates Sirius XM Radio Inc as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate Sirius XM Radio Inc (SIRI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had subpar growth in net income."