Sirius Satellite Radio ( SIRI) was edging higher Thursday after two research firms came out in support of the stock following the previous session's selloff.

Bear Stearns upgraded Sirius to peer-perform from underperform, while Oppenheimer recommended investors buy shares of the company and its rival XM ( XMSR).

Both stocks fell Wednesday after a published report quoted the chairman of the Federal Communications Commission as saying current rules wouldn't allow the two companies to merge.

The possibility of such a union has been the subject of repeated speculation in recent months.

Oppenheimer said that although subscriber results were disappointing in the fourth quarter, fundamental subscriber growth seems to be improving. The firm expects the upturn to continue in 2007 as satellite radio becomes standard for an increasing number of carmakers.

Shares of Sirius were up 0.5% at $3.88, and XM was tacking on 0.3% at $15.49.