Citi Double Downgrades Sirius XM Radio (SIRI) to Sell
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Citi analyst Jason Bazinet downgraded Sirius XM Radio (NASDAQ: SIRI) from Buy to Sell with a price target of $6.00 (from $7.00).
The analyst comments "SIRI Less Attractive — We suspect higher leverage at SIRI will prompt investors to migrate from a levered FCF multiple to an EV-EBITDA multiple as their primary valuation metric. History suggests with 5% EBITDA declines – which we expect in 2023 – SIRI is apt to fetch an EV-EBITDA multiple to 12.1x, akin to $6.00 per share. As such, we are lowering our price target on SIRI from $7.00 to $6.00. In parallel, we are downgrading SIRI from Buy to Sell."
Shares of Sirius XM Radio closed at $6.41 yesterday.
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