UPDATE: Wunderlich Securities Reiterates on Sirius XM Ahead of Earnings Report

In a report published Wednesday, Wunderlich Securities analyst Matthew Harrigan reiterated a Hold rating on

, but lowered the price target from $3.80 to $3.50. In the report, Wunderlich Securities noted, “We are slightly reducing our price target on Hold-rated Sirius XM Radio (SIRI) to $3.50 from $3.80, although the reduction is more off the level of long-term growth activity required to justify SIRI's still ample valuation rather than any particular angst moving into tomorrow's earnings report. The lynchpin for our analysis of Sirius XM's 2020 adjusted operating income potential (and fair 2014 valuation) remains average annual customer additions inclusive of the used car market and pricing growth, as the company's cost structure remains highly predictable. "We also expect awareness of mounting competition from Apple's (AAPL-NR) CarPlay and other entrants to restrain multiple expansion even as Sirius XM renews repurchase activity.” Sirius XM closed on Tuesday at $3.22.