Sirius XM Radio (SIRI) is worth a lot more than it's currently trading for, if a very upbeat research call on the satellite radio provider Tuesday is accurate.
The stock, a consistently heavily traded name that has for years had both defenders and attackers about as passionate as you'll find, was recently up 7 cents to $2.64, matching its 52-week high. But if Bank of America Merrill Lynch is correct in its assessment, the stock's got some 46% higher to go from here to $3.75. Not surprisingly, that positive outlook earned it a buy rating from the bank, which was initiating coverage.
It's already had a giant run since 2009, the year Liberty Media (LMCA) invested a big chunk in the company that had been left for dead by doubters worried about its debt load (Sirius XM still has about $3 billion on that front). 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, according to FactSet data. At theRead More »from Sirius XM: Buy It and Plan on Huge Gain, Analyst Says