• AP, Monday, December 12, 2005 10:45 AM

Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. both rose Friday following Citigroup's recommendation that investors buy shares in both companies. Analyst Eileen Furukawa made the call. "In our view, satellite radio is one of the few areas within the media sector that offers attractive secular growth," the Citigroup analyst wrote in a report. "The industry has already experienced robust growth from 4.4 million subscribers at the end of 2004 to our estimate of 9 million by the end of 2005." Furukawa predicted XM Satellite Radio shares could hit $43 within the year; Sirius shares could reach $9.00. Last Friday, XM closed at $28.51; Sirius at $7.72. By the year 2015, the Citigroup analyst wrote, satellite-radio subscriptions could reach 51 million.

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