Some analysts have come to the satellite radio company's defense, proclaiming that Sirius is better left alone.
First, it was Jessica Reif Cohen, analyst at Bank of America (BCA), who issued a buy rating on the stock and slapped it with a $5 price target. From Tuesday's closing price of $3.39, this target represents a 47% premium above current value. If Cohen is correct, this makes Sirius one of the best bargains on the market.
It would seem that Sirius' long-term value is better than what is being projected for Apple (AAPL). With Apple having just entered the automobile dashboard with CarPlay, Apple just became a Sirius competitor, which comes after Apple released iTunes Radio last year. From a value perspective, it makes sense to compare both companies as they tackle similar markets.
Carl Icahn claims Apple is a "no-brainer." Cohen, by virtue of her 47% suggested premium, is essentially making the same claim for Sirius. But which one is the better buy?
Apple's stock closed at $531.40 Tuesday. If you factor in Cantor Fitzgerald's price target of $777, the industry's most bullish, this represents a premium of (only) 46%. I say "only" because Cohen's target for Sirius still beats Apple's mark by 1%. So does Cohen believe that Sirius is a better long-term investment than Apple? I think one could come to this conclusion.