UPDATE: Wunderlich Securities Downgrades Sirius XM Holdings to Hold, Lowers PT as Liberty Media Deal Becomes Less Likely

In a report published Wednesday, Wunderlich Securities analyst Matthew Harrigan downgraded the rating on

from Buy to Hold, and lowered the price target from $4.20 to $3.80. In the report, Wunderlich Securities noted, “We are lowering both our rating on Sirius XM Radio (SIRI) to Hold from Buy and our target to $3.80 from $4.20. We now apply just a standalone value for SIRI as we are skeptical that there will be a material sweetening of the 0.076 exchange ratio (after a 2:1 C stock dividend) on the Liberty Media (LMCA-$129.86, Buy) bid. Our standalone target had been $4.00 vs. $4.30 with a deal, but we are now allowing for a slightly lower 1900 S&P 500 assumption on our market-linked valuation, along with a $120 SPX earnings assumption that bumps up the cost of equity and constricts the ‘as is' target to $3.80. We also came away from the January CES show with a conviction that tech companies and OEMs are now regarding the car as the world's largest mobile device with a vast array of new apps in queue.” Sirius XM Holdings closed on Tuesday at $3.52.