Wunderlich Securities Speculates On How Possible Apple/Beats Deal Could Affect Sirius XM Holdings

In a report published Tuesday, Wunderlich Securities analyst Matthew Harrigan reiterated a Hold rating and $3.50 price target on Sirius XM Holdings SIRI. In the report, Wunderlich Securities noted, “We are maintaining a Hold rating on Sirius XM Radio (SIRI), with the lynchpin for our analysis of 2020 operating income (and 2014 valuation) still residing in annual customer additions, inclusive of reactivated radios, and pricing power. Although Apple's possible $3.2B acquisition of Beats has few immediate implications, it does show that competition is gravitating toward full ecosystem players such as Apple and Amazon (AMZN-NR), more so than current music streaming only entrants such as Spotify or even Pandora's (P-NR) ‘Music Genome.' "Accelerating competition from Apple (AAPL-NR) and other entrants may restrain multiple expansion even as Sirius renews repurchase activity. We also would not exclude Sirius M&A activity, per Liberty Media (LMCA-$129.50, Buy) CEO Greg Maffei's comments.” Sirius XM Holdings closed on Monday at $3.20.