Market Overview

UPDATE: Goldman Sachs Initiates Sirius XM Radio at Buy on Cash Flow, Returns

Related SIRI
Wunderlich 'Wary' On Overstating Sirius XM's Revenue Potential
Top 4 NASDAQ Stocks In The Broadcasting-Radio Industry With The Lowest PEG Ratio

Goldman Sachs initiated coverage on Sirius XM Radio (NASDAQ: SIRI) with a Buy rating and a $3.50 price target.

Goldman Sachs noted, "We believe Sirius XM offers investors a mix of robust growth along with accelerating profitability and free cash flow that exceeds peers. Despite its performance year to date (+59% vs. S&P 500 +13%), we see incremental upside to the stock via greater than expected growth in free cash flow (FCF) and FCF/share estimates. We expect SIRI to utilize FCF and an under-levered balance sheet (in accommodative fixed income markets) to aggressively repurchase shares, shrinking share count by 20% through 2015E and 45% over the next ten years."

Sirius XM Radio closed at $2.92 on Monday.

Posted-In: Goldman SachsAnalyst Color Initiation Intraday Update Analyst Ratings

 

Most Popular

Related Articles (SIRI)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters