Sirius XM got a stock price boost on Friday as Citigroup analyst Jason Bazinet initiated coverage with a “buy” rating. Also Friday, Zacks Equity Research designated Sirius XM its “Bull of the Day” recommendation.”
Basinet put a target price of $2.20 on Sirius XM, which is in line with most other analysts. He cited “healthy subscriber growth, high operating leverage, solid free cash growth and potential equity shrink beginning in the second-half of 2012.” The analyst also sees a big growth market for the satellite radio company in used cars. Just a few days ago Sirius XM CFO David Frear told an investor conference that 100 million US cars will have a satellite receiver in the dash by the end of this decade.
Zacks upgraded Sirius XM from market perform (hold) to outperform (buy) and designated it the firm’s “Bull of the Day” recommendation on Friday. Zacks said the upgrade was “based on its huge subscriber additions, launch of new SIRIUS XM 2.0 radio, improved credit ratings and better financial outlook. The company reported highly improved financial results for the third quarter of 2011, beating both the top and bottom line Zacks estimates.”
Sirius XM eneded Friday at $1.75, up a nickel for the day, but had been as high as $1.82 in trading.
