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 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.