Morgan Stanley Sees Mixed Factors for Sirius XM

In a report published Thursday, Morgan Stanley analyst Benjamin Swinburne reiterated an Equal-Weight rating and $3.50 price target on

. In the report, Morgan Stanley noted, “The recent pullback leaves the risk/reward more compelling in our view. However, we remain EW given (1) much of the cable/satellite group has also pulled back and valuation remains reflective of healthy growth expectations, and (2) shares continue to price in success in the used car market, where we have less conviction.” Sirius XM closed on Wednesday at $3.17.