Satellite radio company Sirius XM was a Wall Street darling on Thursday – rising from the opening bell and closing at a 52-week high of $1.93 per share. For the day, Sirius XM was up 3.2%. The reason? An analyst’s bullish research note.
Maxim Group analyst John Tinker already had a “buy” rating on Sirius XM. And he already had a target price of $2.20. So Tinker didn’t really change anything, but rather reiterated his bullish stance on the stock.
He thinks CEO Mel Karmazin is being cautious in his guidance, given the uncertainty of Japanese production of cars and essential parts. But Tinker is expecting stronger US car sales this year and higher full-year 2011 EBITDA than the guidance given by Sirius XM.
Wall Street traders apparently liked his thinking and drove the stock higher on Thursday.