NEW YORK (TheStreet) -- Sirius XM (SIRI) gained 2.3% to $3.58 on Friday after Evercore upgraded the satellite radio company to "overweight" from "equal weight" and increased the company's target price.
Analysts Bryan Kraft and Preeti C. Doshi increased Sirius XM's target price to $4.50 from $3.90. The analysts predicted "rapid growth in 2014 and beyond" for the company. There is potential for Sirius to generate $700 million in telemetrics revenue in 2018, and $3.1 billion in telemetrics revenue in 2025, according to Kraft and Doshi.
The Evercore analysts acknowledged that Sirius has underperformed the S&P since its last earnings report in October, and said the current stock price "fairly values the core business." They argued, however, that the satellite radio company's "core business should continue to grow at a healthy rate."
TheStreet Ratings team rates SIRIUS XM HOLDINGS INC as a Buy with a ratings score of B. TheStreet Ratings Team said this about its recommendation:
"We rate SIRIUS XM HOLDINGS INC (SIRI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."