Sirius XM (SIRI) Ramps on Bullish Barron's Article
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Sirius XM Holdings (NASDAQ: SIRI) is bid up 4% in pre-open trade Monday following a bullish Barron's cover article over the weekend.
Barron's said despite rising 74x since hitting rock-bottom in 2009, investors still underestimate the company's potential and its effective monopoly in satellite radio.
The company is using its $900 million in free cash flow to buyback big chunks of its stock and the stock is attracting the interest of professional money managers. Rainier Investment Management bought $100 million of the stock and portfolio manager Sam Console thinks the stock is worth $5.50 to $6, or 50% above current levels.
"It's been more of a retail stock," Console says, discussing Sirius' volatile past. Now, "more institutional people are thinking about this company as a viable holding. From a fundamental perspective, there are a lot of reasons to like it."
Barron's said despite rising 74x since hitting rock-bottom in 2009, investors still underestimate the company's potential and its effective monopoly in satellite radio.
The company is using its $900 million in free cash flow to buyback big chunks of its stock and the stock is attracting the interest of professional money managers. Rainier Investment Management bought $100 million of the stock and portfolio manager Sam Console thinks the stock is worth $5.50 to $6, or 50% above current levels.
"It's been more of a retail stock," Console says, discussing Sirius' volatile past. Now, "more institutional people are thinking about this company as a viable holding. From a fundamental perspective, there are a lot of reasons to like it."
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