XM and Sirius circle a black hole

Goldman Sachs offered an even gloomier forecast for XM and Sirius Thursday. Citing a dramatic slowdown in subscriber growth, high debt costs, refinancing pressure and a shrinking trend in revenue per customer, Goldman analyst Mark Wienkes cut his XM price target to $6.50 from $11.50 and reduced Sirius to $1.75 from $2.25. The $1.75 price on Sirius assumes the proposed merger with XM is approved - on a standalone basis, Wienkes values Sirius at $1.

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[Source: Financial news of the day - CNNMoney.com]