UPDATE: Goldman Sachs Downgrades Sirius XM Radio Awaiting Better Entry Point

In a report published Friday, Goldman Sachs analyst Matthew Niknam downgraded the rating on

from Buy to Neutral, but reiterated the $4.25 price target. In the report, Goldman Sachs noted, “We remove Sirius XM shares from the Americas Buy List, and downgrade the stock to Neutral, as we see less upside to our 12-month, $4.25 price target. We believe the core elements of the Sirius XM story remain in place, including strong volume growth (SAAR strength, used car opportunity), margin expansion, and outsized FCF/share growth. However, we look for a better entry point, with the stock now trading at a sub-5% normalized FCF yield for 2014. Since adding SIRI to the Americas Buy List on 12/17/12, shares are +39% vs. the S&P 500 +22%.” Sirius XM Radio closed on Thursday at $3.91.