Oppenheimer & Co. cable and satellite analyst Tom Eagan reiterated his “buy” rating on XM Satellite Radio last week, but warned investors that the stock may continue to decline for a few days.
The Recording Industry Association of America filed suit against XM May 16, claiming XM’s Inno portable radio — which allows subscribers to store songs — violates its copyrights.
XM shares hit a new 52-week low ($16.75) in early trading May 17.
“We would not necessarily chase the stock today [May 17] as it could continue to pull back over the next several days as the market wrestles with the liability associated with the lawsuit,” Eagan wrote.
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