"Sirius XM is cheap," I argued earlier this week, and at least one major analyst agrees with me.
Lazard Capital's Barton Crockett upgraded shares of Sirius XM Radio
Crockett's bullish turn is based on improving fundamentals and upcoming catalysts that should double adjusted EBITDA to $1.5 billion in three years. He sees next year's price hike and a 2013 contract reset with General Motors
Crockett also expects CEO Mel Karmazin to commit a fair chunk of its healthy cash flow to share buybacks, ideally eating into the whopping 6.5 billion shares outstanding.
The stock was already having a good week after John Malone -- the head of Liberty Capital
Sirius XM's enterprise value of more than $14 billion limits the potential buyers. Even if one would argue that Liberty already owns 40% of the company -- and roughly a third of the enterprise value -- Malone will likely have to settle for smaller purchases if he goes that route.
Sirius XM's best growth will come as an independent, especially if it's able to realize Crockett's targets.
If you want to see how Sirius XM stands up to the stream teams, add Sirius XM Radio to My Watchlist.
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Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Liberty Capital. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.