(Updated with corrections and information directly from analyst report)

NEW YORK (

TheStreet

) --

Sirius XM Radio

(SIRI) - Get Sirius XM Holdings, Inc. Report

shares soared in midday trading Monday after

Bank of America Merrill Lynch

(BAC) - Get Bank of America Corp Report

initiated coverage of its high-yield bond, pointing out its investment attributes.

Sirius, which offers commercial-free satellite radio programs, jumped by 5% to 60 cents.

Sirius's investment attributes, according to the Bank of America Merrill Lynch, include Sirius's ability to survive an economic downturn much better than its ad-depending peers through its subscription-based business model; a sizable subscriber base; a still relatively small (less than 10%) penetration rate of the entire domestic automobile base -- amid growing OEM penetration -- with the used car market providing additional opportunity; a credit trajectory at a favorable inflection point, with enhanced benefits likely accruing over time, given reduced post-merger competition; and strategic asset value.

Bank of America Merrill Lynch says that Sirius will "handily exceed" its initial 2009 EBITDA guidance of $300 million, while mentioning that possible near-term headwinds may still include lingering economic issues and weakness in OEM production.

Sirius's industry peers have been trading in mixed territory with

Citadel

TheStreet Recommends

(CTDB)

trading up 6.3% to 2 cents and

Cumulus Media

(CMLS) - Get Cumulus Media, Inc. Class A Report

trading down 1.3% at $2.30.

Westwood One

(WWON)

remains flat at $4.50.

-- Reported by Andrea Tse in New York

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