Sirius Joins Russell; Analysts Yawn - TheStreet

Sirius Joins Russell; Analysts Yawn

Russell Investments adds Sirius XM to its preliminary list of companies set to join or leave the Russell 3000 Index.
Author:
Publish date:


NEW YORK (TheStreet) -- Sirius XM (SIRI) - Get Report stock gained ground Monday morning after the name was added to a preliminary list of companies that are set to join or leave the Russell 3000 and Russell Global indexes ahead of a reconstitution of the broad-market barometers on June 25.

Russell Investments

posted the list on its web site after the close of trading Friday.

In early trading Monday, Sirius stock was gaining 3% to $1.04.

Sirius bulls believe the addition is another validation of the stock's investment worthiness.

However, the analyst community feels that the inclusion won't generate much upside for the shares.

Wunderlich Securities analyst Matt Harrigan said the company was already "real" and "credible" before the inclusion, helped by the economic recovery and

Liberty Media

(LSTZA)

, which bought 40% of Sirius XM in 2009 and rescued it from bankruptcy.

More on Sirius XM Jim Cramer Talks Sirius

"The delisting issue was just a distraction," Harrigan said.

"Going into the Russell probably helps the stock hang near or above a dollar, but doesn't cause a real re-rating yet among institutions," he added. "It's a positive but not a game changer."

On Friday, David Gober of

Morgan Stanley

initiated coverage of Sirius XM. In a research note, Gober argued that the company is emerging as a more stable operation, but that its stock price would continue to be volatile.

He didn't put a rating or price target on the stock.

-- Written by Andrea Tse in New York

RELATED STORIES:

>>Sirius XM Gains Stability: Analyst

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.

Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.