Wunderlich Securities Reiterates Hold, $2 Target on Sirius XM Radio

Wunderlich Securities maintains its Hold rating and $2 target price on Sirius XM Radio (NASDAQ: SIRI) as the company assesses fall-out from the near-12% price increase in monthly subscription.

Wunderlich Securities says, "This is the first-ever price increase for legacy Sirius customers and only the second for XM Satellite Radio customers. CEO Mel Karmazin indicated that SiriusXM is not seeing anything "at all" alarming in January churn. EVP David Frear reminded that 80% of self-pay customers are now on debit and credit cards, so there could be a delayed consumer reaction."

SIRI closed at $2.15 a share on Friday.