Investors Eye Sirius as Apple Enters Car Audio Market

Investors Eye Sirius as Apple Enters Car Audio Market

Things never get dull in SIRI-land. Shares of Sirius XM (NASDAQ: $SIRI) have sputtered yet again, down 2.3% for the year.

The stock saw a 2% spike last Friday on news that Liberty Media (NASDAQ: $LMCA) — which currently owns 53% of the company — was exiting plans to scoop up the rest of Sirius it doesn’t already own.

Some analysts have come to the satellite radio company’s defense, proclaiming that Sirius is better left alone.

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First, it was Jessica Reif Cohen, analyst at Bank of America (NYSE: $BCA), who issued a buy rating on the stock and slapped it with a $5 price target. From Tuesday’s closing price of $3.39, this target represents a 47% premium above current value. If Cohen is correct, this makes Sirius one of the best bargains on the market.

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  • Richard Saintvilus

    From my vantage point, John Malone’s decision to shift gears and exit his pursuit of full ownership o Sirius suggests that he’s not using the same formula as Cohen and Evercore. And I don’t advise that investors do, either.

  • bosco

    I can agree w/ your conclusion, Rich, because $SIRI is a captive co, so business is not the same as equity. Time will tell if Dr Malone’s better than Icahn

    • Richard Saintvilus

      bosco –

      What are your projections for the the share price this year? Do you see SIRI regaining its $4 per share?