LSXMA - Morgan Stanley likes Liberty SiriusXM ahead of radio company's earnings

Liberty SiriusXM Group (LSXMA) is up 1% as Morgan Stanley reiterates it as a top pick, ahead of Sirius XM (SIRI -0.6%) reporting earnings tomorrow. The Liberty tracking stock's net asset value gap has widened to 35-40%, it notes. It rates LSXMA Overweight and has a $52 price target, implying 27% upside. On Sirius XM itself, Morgan Stanley is pointing to healthy secular tailwinds for the audio industry this year. Sirius XM pre-announced that self-paid subscriber net adds and financials beat its most recent guidance. The company has better unit economics than most subscription-related businesses, and it's still benefiting from a loyal and growing customer base as well as a competitive moat. Morgan Stanley's maintaining an Equal Weight rating on SIRI and a $7.50 price target (21% upside). Sirius XM is reporting before the open tomorrow; consensus estimates are for EPS of $0.01 on revenues of $2.07B.

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Morgan Stanley likes Liberty SiriusXM ahead of radio company's earnings