Wunderlich Securities Maintains Hold, $2 PT on Sirius XM Radio; Subs Beat
Wunderlich Securities reiterates its Hold rating and $2 price target on Sirius XM Radio (NASDAQ: SIRI) as the company beats subscription expectations in Q1.
Wunderlich Securities comments, "Sirius XM gained 405K, ahead of our 335K estimate, with self pay additions paradoxically improving 148% to 299.3K vs. our 148K estimate. The 14.5mm SAAR (3.464mm U.S. auto sales result) for Q1 helped lift total paid and unpaid trial inventory by 200K+ to 5.7mm. Self-pay monthly churn actually improved to 1.9% in Q1 from 2.0% last year. We had modeled 2.2% churn in accordance with 2.1% full-year guidance after the well communicated price increase to $14.49 monthly."
SIRI closed at $2.26 on Monday.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.