Sirius XM Radio Inc (NASDAQ:SIRI) looks to be going strong according to the estimates of analysts from Bank of America Merrill Lynch. In a report to investors, they have reiterated their Buy rating and set their price objective at $4 per share.

Sirius XM

One of the investor concerns the analysts addressed is the fact that Sirius XM Radio Inc (NASDAQ:SIRI) has not yet named a permanent replacement for CEO Mel Karmazin. Investors have been wondering if the open CEO position would result in any major changes in the company’s “normally detailed guidance.” However on Wednesday the interim leadership of the company gave detailed guidance numbers both for the company’s fourth quarter and for the year ahead.

BAML analysts said Sirius XM Radio Inc (NASDAQ:SIRI)’s guidance is in-line with their estimates, which were “on the aggressive side.” The company said that during its December quarter, it added about 530,000 new subscriptions, which was significantly more than BAML’s estimate of 400,000 new subscriptions for the quarter.

The analysts also note that while the company’s estimates for 2013 are also in-line with their estimates, Sirius XM often issues conservative projects for the year ahead early in the year and then raises its numbers several times. They said the company raised its sub-guidance three times in 2012.

For 2013 Sirius XM Radio Inc (NASDAQ:SIRI) projected 1.6 million self-pay net adds, which they say is significant because it “’normalizes’ for a change in a contract with GM,” which commences in the fourth quarter of this year.  They see a 27 percent upside on shares of Sirius XM and believe this year will be another solid one for the company.