Sirius XM Radio Inc(NASDAQ:SIRI) has put out a very upbeat research call on Sirius XM, which is shortly about to be controlled by Liberty Media.
According to Bank of America Merrill Lynch the stock's got some 46 percent upsides to it from here to $3.75.
That positive outlook has also resulted in a But rating from the bank which is initiating overage.
The shares in the company have soared since the time it was near bankruptcy and Liberty Media saved it from oblivion by infusing about $350 million worth of funds in exchange for a 40 percent stake.
Will SIRI Continue To Hit New Highs? Find Out Here
If you'd bought it at a dime a share then, you're up 26 times on your money.
The BofA Merrill target is well above the current high analyst call. At the moment, the top price target is $3.35, and the average of all those following the stock is $2.75, a full dollar below what BofA sees coming.
Liberty has been buying shares of Sirius XM and plans to soon have more than 50 percent of the company formed by the merger of Sirius Satellite Radio and XM Radio.
Sirius ‘fundamentals have in many cases been improving, too.
Sales have risen from $600-plus million in 2006 to past $3 billion, it's gone from losses to profits on the bottom line in that time and EBITDA has turned positive since the days it was talked down regularly by the pessimists.
That's something BofA Merrill points out, noting, for example, that growth is expected to be strong into 2016 for free cash flow and EBITDA.
Should it actually reach $3.75, Sirius XM would be in territory it hasn't seen since late 2007.
Shares of SIRI are up 3% to $2.64 and made multi-month high of $2.68.