Morgan Stanley analyst Benjamin Swinburne resumed coverage of Liberty Sirius XM (LSXMK) with an Overweight rating and $51 price target, noting that Sirius XM (SIRI) is cheaper today than six months ago and he thinks it will likely outperform expectations and guidance this year. Liberty is a pure play holding company with "hard control of the underlying business," yet the stock trades with the widest discount versus comps, said Swinburne, who noted that the spread has begun to tighten and that he believes it should continue to tighten as Liberty and SiriusXM buy back stock. He also resumed coverage of Sirius XM with an Equal Weight rating and $6.50 price target.

Pivotal Research upgraded Sirius XM (SIRI) to Buy from Hold with a price target of $4.90, down from $5.05. The magnitude of the decline in Sirius XM's valuation has been surprising, exacerbated by a current lack of institutional ownership and the fact most investors owned parent Liberty Sirius XM (LSXMK) to play the narrowing of the net asset value gap rather than as a way to invest in Sirius, the analyst tells investors in a research note. The firm says this has created an attractive investment opportunity, highlighted by the 55% upside to its new target price. It views Sirius as a free cash flow acceleration story.