Without or without merger XM and Sirius face a bleak future says Wall St. Goldman Sachs, citing a dramatic slowdown in subscriber growth, high debt costs, refinancing pressure and a shrinking trend in revenue per customer cut its XM price target to $6.50 from $11.50 and reduced Sirius to $1.75 from $2.25.

After a rapid growth phase earlier this decade, satellite radio sales have plunged due to a sluggish economy and slumping car sales. XM’s cash fell to $156 million in February and the company was forced to tap $187.5 million from its $250 million credit line. The appeal of satellite radio is declining in the youth market as kids lean more toward MP3s, says Goldman

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