UPDATE: Bank of America Initiates Sirius XM Radio at Buy on Outlook
Bank of America initiated coverage on Sirius XM Radio (NASDAQ: SIRI) with a Buy rating and a $3.75 price objective.
Bank of America commented, "We are positive on SIRI shares for the following reasons: (1) Average projected EBITDA and FCF growth through 2016E are compelling, averaging 20% and 35% respectively (the fastest growth rate of any media company); (2) Liberty Media (Not Covered) may eventually take control of SIRI, the greatest likelihood of a mechanism for doing so may be an RMT; (3) Satellite Radio's operating leverage is difficult to match in media; (4) We expect FCF generation will be returned to shareholders in concert with a healthy leverage ratio of 3-4x."
Sirius XM Radio closed at $2.57 on Monday.
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