SIRIUS XM Radio Inc. ( SIRI ), the largest broadcast radio service provider in the U.S. and the second largest entertainment subscription service provider after Comcast Corp. ( CMCSA ), recently launched the upgraded version of SIRIUS XM 2.0 called "Lynx".
Lynx is touted as the next-generation satellite receiver that allows the subscribers to stream content to home audio systems via Bluetooth. It also features a high-resolution touch screen and allows 200 hours of music storage, hence providing more options to the users to access their favorite music anytime and from anywhere.
This advanced version of SIRIUS XM 2.0 is currently available at the online store of shop.siriusxm.com and crutchfield.com for $249.99 and very soon will be available in retail outlets across the country.
Lynx also comes with two other accessories namely Lynx LV1 Vehicle Kit and Lynx LH1 Home Kit, each costing $69.99. Vehicle Kit supports listening of music while traveling in a vehicle and Home Kit allows customers to listen to music at home.
Few days back, SIRIUS XM launched SIRIUS XM 2.0 product suite in the retail channel. SIRIUS XM 2.0 includes WiFi, Bluetooth, Internet, and will expand its existing bandwidth by 25%. It also features time shifting, replay, pause, rewind facilities and can be upgraded to higher versions. SIRIUS XM 2.0 will enhance the audio content line up of the company with new channels.
Earlier, Standard & Poor's (S&P) upgraded the credit rating of SIRIUS XM from "BB-" to "BB". S&P declared that improved operating performance and declining debt leverage of the company are primarily responsible for this upgrade.
However, mounting debt, sluggish U.S. economic growth and higher programming expenditure coupled with stiff competition from Pioneer System may act as headwinds for the stock going forward.
Concurrently, we upgrade our long-term recommendation for SIRIUS XM to Outperform from Neutral. Currently, it has a Zacks #1Rank, implying a short-term Strong Buy rating.
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