$SIRI Soars To New 52-Week High Is $4.00 Next
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Sirius XM entered the New Year under new leadership. And now the stock has celebrated the arrival of 2013 and its new CEO by making a new 52-week high. The stock closed up 4.5% Wednesday to $3.02 after reaching an intra-day high of $3.04, levels it has not seen since March 2008 (almost 5 years) when it reached $3.06 .
In 2012, Sirius was a remarkable story. There have been many events or “noise” that would have crippled other companies. But the satellite radio giant was able to overcome them. These include chronic distractions related to Liberty Media and its fight for control of the company. Sirius was also able to sidestep competitive threats from the likes of Pandora and Spotify.
Remarkably, the stock soared even as rumors surfaced that Apple was planning to launch a streaming music service of its own. Despite all of these concerns and constant worries from writers like me, Sirius remained a model of execution – one that was very evident in the company’s Q3 earnings results as revenue soared 14% to $867 million. Likewise, adjusted EBITDA jumped 24% to $245 million.
As a sign of a working model, free cash flow remained impressive – registering during the quarter at $195 million, which was almost a year-over-year improvement of 200%. But in 2013, it will only get better – particularly with free cash flow and adjusted EBITDA expected to arrive at $700 million and $900 million respectively. I expect Sirius to exceed both numbers – helped with sustained growth in auto sales .
This month, investors can expect the stock to reach as high as $3.20 and possibly $3.30 as it heads into its Q4 earnings announcement in February. Sirius remains a strong buy and I will maintain my 2013 price target of $4.00 by the second half of the year
(by Richard Saintvilus Forbes contributor)
http://www.forbes.com/sites/richardsaintvilus...r=yahootix
GLTA
$SIRI
