NEW YORK, February 10 (FinanceEnquiry.com) - Analyst Tuna Amobi of S&P Capital IQ reiterates his BUY rating on the shares of Sirius XM Radio (NASDAQ: SIRI), while reducing his estimates for the company. The target price is set to $2.50.

In a research note published yesterday, the analyst mentions that Sirius XM Radio has announced relatively healthy financial targets for 2012 that seem to indicate potential inflection for dividends or buybacks. On the conference call, Sirius XM Radio announced that it expects marginally higher monthly churn to 2.1% as compared to 1.9% in 2011 on price hike, excluding contrary indications, the analyst says. The EPS estimate for 2012 has been reduced from 0.11 to 0.08 and the EPS estimate for 2013 is set at $0.11, given some potential downside risk.