Well, the day has finally come where we see a $5.00 price target set for SiriusXM (NASDAQ:SIRI). Piper Jaffray set the new high mark citing robust auto sales and good success within the used car channel on garnering additional subscribers. The used car channel is so valuable because the costs of installing the radio have already been absorbed. Essentially any used car that signs onto the satellite radio service see the bulk of the subscription fee translate to the bottom line.
With car sells expected to close 2013 with over 15.5 million cars sold, and some analysts now talking about 16.5 million next year, the next 18 months could show a very good growth phase for SiriusXM. Higher analysts price targets for SiriusXM have been happening or maintained despite the fact that the equity is now approaching 6 year highs. In fact, the trend has been for analysts to increase price targets rather than lower the rating. As long as price targets are increased the signal is that growth is happening. Stay Tuned!