NEW YORK (TheStreet) -- Sirius XM (SIRI) - Get Report stock is up above $1 for the fifth day in a row. Now the question: can it stay there for good -- or least long enough to regain compliance with NASDAQ listing requirements?
Analysts think this time it's for real -- albeit with a cautious form of optimism.
"In order for the stock to fall back below a dollar per share, it would require a 10%-plus decline in value from the current price, which would need to take place within the next five days," Barrington Research Associates analyst John Hain wrote in an email to
"In our opinion, this seems fairly unlikely in the absence of a negative news item, the largest potential for which falls outside of the time horizon under discussion," Hain explained.
The time horizon Hain was referring to includes share-price moving events such as Sirius XM's first quarter earnings, set to be reported on May 7th, and auto sales numbers for April, which are expected to come out shortly before that, in early May.
Hain thus takes a cautiously optimistic position on the stock regaining compliance with listing standards as "we have been head-faked by the market before," while noting that Sirius XM has a rather high beta, or is sensitive and susceptible to changes in the broader market.
Wunderlich Securities has had a hold rating on Sirius XM with a $1 price target and has sold Sirius stock and taken some profits. But Wunderlich analyst Matthew Harrigan sees the stock shooting up to $1.50 as long as auto sales stay strong and as long the economy holds together. Harrigan notes that once a stock achieves a certain threshold, it naturally tends to stay above that level.
Sirius stock ended the regular Tuesday trading session up 4.6% at $1.13.
-- Reported by Andrea Tse in New York
Follow TheStreet.com on
and become a fan on
Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.