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.
Latest Ratings for SIRI
|Apr 2017||Morgan Stanley||Downgrades||Equal-Weight||Underweight|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.