Morgan Stanley Likes Sirius XM's Business Model

In a research report published this morning, Morgan Stanley said it likes Sirius XM Radio's (NASDAQ: SIRI) growth outlook, high incremental margins and overall business model.According to Morgan Stanley, “[We] believe (1) the stock is priced for success following strong YTD performance and (2) consensus expectations for net adds already assumes muted customer reaction to price increases, solid SAAR. We are recommending OW LMCA ($89), which owns 40% of SIRI via convertible preferred stock, as a way for investors to gain SIRI exposure at a discount. We estimate that at current prices SIRI represents roughly 48% of LMCA's pre-tax NAV.”Morgan Stanley maintains its Equal-weight rating on Sirius XM, which closed yesterday at $2.24.