According to a research call made on Tuesday to the satellite radio provider, Sirius XM Radio Inc(NASDAQ:SIRI) stocks are worth far more than what they are currently being priced at. The current trading does not do justice to the price up to which the stocks should go up to. The stocks for the satellite radio provider have had people vouching both for, and against it. But the stock remains a very popular name in the trading sector, and it recently went up by 5 cents to $2.62 on Tuesday. This has lead to a multi-year high for Sirius XM Radio.
The Bank of America, Merrill Lynch, however, has been suggesting that the stock should go up to $3.75, making it a 46% increment. According to the estimations and assessments of the financial firm, the stocks will be going up in price soon. This has lead to a buy rating from the bank, thereby, giving it coverage.
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After Liberty Media invested in the company, which had been abandoned by many on account of its huge debts, Sirius XM Radio has been doing well for itself since 2009. The debts, however, are still an issue, being priced at about three billion dollars. But after the investment of Liberty Media, it has been going upwards, steadily. A 26-time increment in your earnings was granted on your share worth a dime during that phase.
The Bank of America Merrill Lynch target is much higher than that of the other analysts. The bank has vouched for the company, far more than the average expectations by other analysts, which has been estimated at $2.75, thereby making the estimate of BofA Merrill, a full dollar more than that of the average call.
Liberty hopes to own about 50% or more of the company, and to that effect, has steadily been buying shares to the company which was formed, when Sirius satellite Radio and XM Radio merged into a composite company. The radio satellite company has undoubtedly been very popular, and has names such as Howard Stern associated with it.