JPMorgan Analyst Believes Sirius XM Is Fairly Valued, Downgrades To Neutral

JPMorgan analyst Sebastiano Petti downgraded Sirius XM Holdings Inc SIRI to Neutral from Overweight with a price target of $7, down from $8, implying an 11.3% upside.
The analyst cites "softening" annual car sales and rising capital expenditures for the downgrade following management comments at recent industry conferences.
With the silicon shortage likely to become "more acute in the coming quarters," Petti reduced Sirius XM's 2022 self-pay net adds to 750,000 from 1.05 million.
And with the SXM 9 and SXM 10 satellite builds commencing, he meaningfully increased his 2022-2024 Capex estimates to account for $480 million of spending over those three years.
Petti now believes shares of Sirius XM are fairly valued.
Price Action: SIRI shares traded lower by 2.23% at $6.15 in the premarket session on the last check Friday.