Updated from 12:37 p.m. EST to include additional analyst comments in the fourth paragraph and portfolio manager comments in the sixth paragraph.
NEW YORK ( TheStreet) - Sirius XM Radio (SIRI) is a battleground stock for several reasons. After years of battling down debt, and seeing the return of a healthy car market, analysts think there is some "serious" upside in Sirius.
CEO Mel Karmazin has been in the top spot at the satellite-radio company for nearly a decade, and has transitioned the firm from one that was heavily reliant on point-of-sales service to being reliant on the new car market.
Karmazin and his team has been regarded as a smart, financially motivated management team, similar to Liberty Capital's John Malone. Liberty owns 40% of Sirius. "It's going to be a free cash flow machine, and I think Sirius will trade at a premium to the market multiple on a free cash flow basis. Paying 15 to 20 times free cash flow for Sirius over the next few years is not a crazy idea," said one hedge fund manager who declined to be named. "It's pretty realistic to think it
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