Sirius XM Radio Inc (NASDAQ:SIRI) the brightest star in the radio constellation
When it comes to Sirius XM Radio Inc (NASDAQ:SIRI), the analysts’ vote is unanimous. The company shines brighter than any other radio service. It has now reached a $4.25 price target and there’s nothing to keep this hot stock away from an outperform rating. It goes without saying that the run has been a very exhilarating one for SIRI.
Its satellite radio service now has in excess of 25M subscribers and all the skeptics are trying scurrying to save face. Since last November, the company has the lowest number of shares that have been held short. The company is also taking full advantage of its position as a media favorite. And it has been playing to the gallery and issuing new debt at dirt-cheap rates.
The country’s sole satellite radio company is now going to be offering $600M worth of Senior Notes which will mature in 8 years. SIRI will use the proceeds to redeem debt that will be due in 2 years. The company should be able to fare much better than the 8.75 percent rate that it had to spill for those notes. Its newfound credit worthiness has helped it generate a large amount of free cash-flow which it has been putting to good use.
The consensus vote
The company has spent $1.3B on buying-back stocks in 2013. In the coming months, more analysts are expected to give SIRI their $4.00 stamp of approval. No doubt, there are other stars on the radio horizon but Sirius has been shining with a steady light. By the looks of it, satellite radio will be able to withstand the assault from various streaming alternatives.
For the moment at least, Sirius XM Radio Inc (NASDAQ:SIRI) is moving unflinchingly forward and not just moving, it’s gaining momentum. It won’t be entirely wrong to state that with some luck, the company might even edge its way above the $4.00 mark in the coming months.