- Sirius XM (NASDAQ:SIRI) gained 1% today to close at $3.87, its highest point in three weeks.
- Buckingham Research is recommending getting exposure to the company, which it has Buy-rated -- but instead through Liberty Media (LMCA) rather than a direct purchase.
- The vast majority of Liberty's market cap has been tied up in holding a majority stake in Sirius XM (59.4% as of July 24). And while Sirius is market priced, Buckingham says, Liberty Media's at a 17% discount to net asset value.
- Analyst James Ratcliffe has a $4.50 price target on Sirius XM; that implies 16%-plus upside from today's close. He has a $48 target on Liberty Media, which closed today up 1% to $37.55, implying 28% upside.
- Previously FBR had reiterated its Outperform rating on Sirius XM in looking at strong auto sales providing a good funnel. Buckingham agrees, expecting an above-guidance 1.95M net added subscribers for 2015.