Sirius XM, Devon, FPL: Ratings Changes

Sirius XM Radio, Devon Energy and FPL Group had their ratings changed at TheStreet.
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BOSTON (TheStreet) -- Sirius XM Radio (SIRI) - Get Report, Devon Energy (DVN) - Get Report and FPL Group (FPL) - Get Report had their ratings changed by TheStreet's stock model.

The model upgraded satellite radio broadcaster Sirius XM Radio to "hold."

Quarter

: Sirius swung to a first-quarter profit of $42 million, or 1 cent, from a loss of $50 million, or 7 cents, a year earlier. Revenue grew 13%. The operating margin rose from 7.1% to 19%. Sirius has $3.6 billion of debt, equal to a debt-to-equity ratio of 24.

Stock

: Sirius has nearly doubled during the past year, outpacing U.S. indices. It trades at a price-to-projected-earnings ratio of 75 and a price-to-book ratio of 29, 320% and 815% premiums to peer averages. It's cheap based on sales and cash flow.

Consensus

: Of firms rating Sirius, 5, or 56%, advise purchasing its shares and four recommend holding them.

Janco Partners

expects the stock to gain 35% to $1.40.

Lazard Capital Markets

believes it will hit $1.35.

RBC

(RY) - Get Report

thinks it's fairly valued at $1.

The model upgraded utility FPL Group to "buy."

Quarter

: First-quarter profit soared 53% to $556 million, or $1.36, as revenue declined 2.3%. The operating margin expanded from 16% to 26%. The balance sheet holds $1.2 billion of cash and $21 billion of debt, equal to a debt-to-equity ratio of 1.5.

Stock

: FPL has fallen 9.3% during the past year, underperforming U.S. indices. It trades at a price-to-projected-earnings ratio of 11 and a price-to-cash-flow ratio of 4.9, 11% and 8% discounts to peer averages. The shares offer a 3.9% dividend yield.

Consensus

: Of analysts covering FPL, 13, or 54%, advise purchasing its shares and 11 recommend holding them.

JPMorgan

(JPM) - Get Report

predicts that the stock will rise 19% to $61.

Barclays

(BCS) - Get Report

expects it to climb 15% to $59. It has fallen 7%, annually, since 2007.

The model upgraded oil-and-gas explorer Devon Energy to "buy."

Quarter

: Devon swung to a first-quarter profit of $1.1 billion, or $2.39, from a loss of $4 billion, or $8.92, a year earlier. Revenue grew 59%. Margins turned positive. Devon holds $724 million of cash and $6.1 billion of debt, equal to a debt-to-equity ratio of 0.4.

Stock

: Devon has risen 12% during the past 12 months, trailing benchmarks. It sells for a price-to-projected-earnings ratio of 11 and a price-to-cash-flow ratio of 5.8, 22% and 27% discounts to industry averages. It's also cheap based on book value.

Consensus

: Of researchers following Devon, 16, or 59%, rate its stock "buy" and 11 rate it "hold."

Benchmark Co.

offers a price target of $106, leaving a potential 56% return.

Goldman Sachs

(GS) - Get Report

believes the stock will climb 34% to $91.

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Ratings Upgrades Portfolio

and

Ratings Downgrades Portfolio

-- Reported by Jake Lynch in Boston.