Market Overview

UPDATE: Bank of America Initiates Sirius XM Radio at Buy on Outlook

Related SIRI
Is Pandora (P) Poised to Beat Earnings Estimates? - Analyst Blog
Market Wrap For April 23: S&P 500 Ends Winning Streak, Apple Announces 7-for-1 Stock Split

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.

Posted-In: Bank of AmericaAnalyst Color Initiation Pre-Market Outlook Analyst Ratings

 

Most Popular

Related Articles (SIRI)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free