Tomahawk, WI 12/02/2013 (BasicsMedia) – That Sirius XM Holdings Inc (NASDAQ:SIRI) is an amazing stock can be seen in various fronts. The stock once traded at a mere 5 cents per share for a many years. It’s now strongly above $3 per share and going by analysts’ sentiments, its price portion is somewhere around $5 and $6 in the upcoming months.

The satellite radio company is now thriving in success, posting substantial cash flow and doing exploits in the market in terms of subscriber enrollment. But just a few years ago, it was going bankrupt and made consecutive losses. The result of all this that the stock is quickly shading the image of retail stock to institutional investment stock as big money jostle for stake. 

Analysts’ perception change

The jostling for Sirius XM Holdings Inc (NASDAQ:SIRI) is fanned by the change in sentiment among the analyst community. More and more equities researchers are finding this satellite radio monopoly company laden with opportunities. For example, Bank of America corp (NYSE:BAC) Jessica Cohen has her latest price target on the stock at $4 per share. This came when the stock was trading at exactly $3 per share in June this year.

ISI Group is yet another rating agency that had issued sentiment on Sirius XM Holdings Inc (NASDAQ:SIRI), giving it $4.40 in price target through its analyst Vijay Jayant. The rating agency expects the company to increase its cash flow by 35% per year while the stock earning 30 cents per share by 2015.

Citigroup has also weighed in with a sentiment on the stock expecting the price to hit $4.50 and the company to set aside about $11 billion in stock buyback.

These are just some of the research houses that have had a change of heart in the stock after giving it a wide berth for nearly a decade when it struggled for survival. The result of these positive sentiments as has been mentioned earlier is that they have served to change investor perception on the stock more so the big money. One such institutional investor is Rainier Investment Management, a fund with more than $11 billion under management. The fund has put a premium on the stock while banking on its more than 50% price appreciation that is predicted in the upcoming months.

Investors who took up the stock at 5 cents per share or lower than $3 per share, have found Sirius XM Holdings Inc (NASDAQ:SIRI) to be a rewarding stock and this makes investors ecstatic about their hold. With expectation that the stock still has enough room going up, near-term investors can book their profits at $3.77 per share for massive gains.

How long can SIRI remain a success story?

Looking at the stride which the satellite radio has made recently, the company has laid solid ground for growth going forward. This can be in its capital investments which include a newly launched satellite balloon and acquisitions. With big money spending now closed, the company is piling its cash flow and this means that its financial position is improving steadily.

Sirius XM Holdings Inc (NASDAQ:SIRI) has also tapped into the lucrative connected vehicle market which is expected to reveal incremental revenue in its upcoming quarter and this also means a new sustainable revenue source going forward.

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