Wunderlich Securities Changes Estimates For Sirius XM

In a report published Wednesday, Wunderlich Securities analyst Matthew Harrigan reiterated a Hold rating and $3.50 price target on

. In the report, Wunderlich Securities noted, “Even as competition within the car accelerates, we maintain a Hold rating on Sirius XM Radio (SIRI). The lynchpin for potential 2020 operating income (and 2014 price target) remains annual customer additions, inclusive of reactivated radios, and pricing power. "Google's new acquisition of Songza and Apple's purchase of Beats show that competition is gradually gravitating toward full ecosystem players more so than current music-streaming only entrants such as Spotify or even Pandora's (P-NR) ‘Music Genome.' Yesterday, Apple also announced nine more CarPlay partners, including Audi, Chrysler, Dodge, and Mazda. With both Google and Apple courting global car makers, OEMs are now likely to pair Android and iOS capabilities. (This note also touches on June 2014 new car sales and Q2 outlook).” Sirius XM closed on Tuesday at $3.44.