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

Goldman Sachs initiated coverage on Sirius XM Radio

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.