Wunderlich Securities Increases PT on Sirius XM Radio to $2, Maintains Hold (SIRI)

Wunderlich Securities reiterated its Hold rating on Sirius XM Radio

. Wunderlich decided to leave its rating unchanged, even though it increased its price target on Sirius from $1.65 to $2. In a research report published today, Wunderlich states, "We are increasing our price target on Hold-rated Sirius XM (

) to $2.00 from $1.65 while leaving intact ample five-year forecast assumptions. We had lowered our Sirius XM PT on 3.23.11 largely through a revision in assumed LT growth rate to 1% from 3%; we are now pushing the assumption back to this threshold and assuming a beta of only 1.15. We continue to emphasize long-term normalization of U.S. vehicle sales and conversion rates rather than Howard Stern litigation or auto sales aberrations off Japanese output and parts supply chain noise. The stock's 19% appreciation since a not-that-inspiring Q1 report has to be partially attributable to momentum investors and short-covering." In today's trading, Sirius added 0.44% to its value and is currently trading at $2.29.