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

Loading...
Loading...
In a report published Wednesday, Wunderlich Securities analyst Matthew Harrigan downgraded the rating on
Sirius XM HoldingsSIRI
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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorDowngradesAnalyst RatingsMatthew HarriganWunderlich Securities
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...