As the DARS segment of the satellite industry strengthens and pushes forward, financial analysts continue to gain confidence in the sector.

“We believe many of XM Radio’s execution risk factors have successfully been addressed, including automotive and consumer electronics manufacturing agreements, the interoperable chipset, the development of e-commerce opportunities and the resolution of a patent infringement lawsuit,” said Tim O’Neil, an analyst with Connecticut-based WIT SoundView. “As such, we believe a lower discount rate is warranted to reflect this progress and we are raising our 2000 price target from $40 to $67 and reiterate our strong buy rating.”

The satellite radio industry segment remains a duopoly market and both XM Satellite Radio and Sirius Radio may gain overall industry success as satellite- delivered radio takes off in 2001.

In other news, XM Satellite and LiveTV, a supplier of real-time programming from DirecTv Inc. [GMH] on commercial aircraft, signed a ground- breaking agreement to offer XM’s next-generation radio programming to airline passengers across the country beginning in 2001.

Under the 10-year agreement, LiveTV will incorporate XM-ready receivers into its new in-flight entertainment system, sell the XM service directly to commercial airlines, and market and promote XM as part of its in-flight entertainment service.

LiveTV recently announced a similar agreement with DirecTv, the nation’s biggest provider of satellite television entertainment, to offer airline passengers up to 24 channels of DirecTv programming via LiveTV’s in-flight entertainment system.

DirecTv is one of XM’s investors and strategic partners. Terms of the deal between XM and LiveTV were not disclosed. XM plans to begin launching its satellites later this year and to provide service during the first half of next year.