Citi Double Downgrades Sirius XM Radio (SIRI) to Sell

(Updated - December 1, 2022 3:36 AM EST)

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."

For an analyst ratings summary and ratings history on Sirius XM Radio click here. For more ratings news on Sirius XM Radio click here.

Shares of Sirius XM Radio closed at $6.41 yesterday.

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