Sirius XM Radio (SIRI) PT Lowered to $3 at Wells Fargo, Adds to Q2 2024 Tactical Ideas List

Wells Fargo analyst Steven Cahall lowered the price target on Sirius XM Radio (NASDAQ: SIRI) to $3.00 (from $4.50) while maintaining a Underweight rating.

The analyst comments "If SIRI can return to subscriber growth we think there will be less perceived risk to forward EBITDA and FCF, and as a result a higher multiple. If net adds remain modestly negative we think the specter of competition will be the dominant narrative. We also reshape ests and are lowering our Q1/FY24 self-pay net adds from -193k/-25k to -331k/-143k. Our AEBITDA for Q1/FY'24 goes from $632mm/$2.7bn to $626mm/$2.7bn. We are adding SIRI (Underweight) to our Tactical Ideas List. We think it's a challenging year for growth, and the multiple will derate towards Media & Cable peers at ~7x EV/EBITDA. This implies ~$3/sh, which is our new price target."

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