UPDATE: Piper Jaffray Initiates Sirius XM Radio with Overweight on Strength of Business Model

Piper Jaffray initiates its coverage on Sirius XM Radio SIRI with an Overweight rating and a price target of 2.50. Piper Jaffray comments, "We are bullish on SIRI shares and initiate coverage with an Overweight rating. We believe the company remains well-positioned to monetize its substantial listener base as scale moderates expenses. While the broader ‘radio' space has started to get more competitive with new internet radio entrants, we think SiriusXM's "premium content at a premium price" business model appears well-positioned to generate substantial EBITDA, and, more importantly, FCF." SIRI closed at $1.82 on Tuesday.