UPDATE - Barclays Starts Sirius XM Radio (SIRI) at Underweight; Strong Growth Already Priced In

UPDATE - Barclays initiates coverage on Sirius XM Radio (NASDAQ: SIRI) with an Underweight. PT $2.00.

Analyst, James M. Ratcliffe, said, "We believe the SIRI business is healthy and expect material growth in EBITDA and FCF, but believe, at 14x 2013E EBITDA and nearly 19x 2013E fully-taxed FCF, growth is more than priced in at current levels."

Ratcliffe suggested investors consider 'Equalweight' rated Liberty Media (Nasdaq: LMCA), considering Liberty still holds a 40% stake in SIRI. However, a split off of that stake is expected in 2012. The Barclays analyst also feels that competition is strong (from internet based platforms, i.e. Pandora (NYSE: P)), but sees room for both to grow.

Note - Currently, shares of SIRI are trading at intraday low...last trade $2.1050, down 0.0450 (-2.09%).

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