Sirius XM Radio Rating Lowered to Neutral at Goldman Sachs Group Inc. (SIRI)
Sirius XM Radio (NASDAQ:SIRI) was downgraded by Goldman Sachs Group Inc. from a “buy” rating to a “neutral” rating in a research note issued on Friday, TheFlyOnTheWall.com reports. They currently have a $4.25 price objective on the stock. Goldman Sachs Group Inc.’s target price would indicate a potential upside of 13.36% from the stock’s previous close.
The analysts wrote, “We remove Sirius XM shares from the Americas Buy List, and downgrade the stock to Neutral, as we see less upside to our 12-month, $4.25 price target. We believe the core elements of the Sirius XM story remain in place, including strong volume growth (SAAR strength, used car opportunity), margin expansion, and outsized FCF/share growth. However, we look for a better entry point, with the stock now trading at a sub-5% normalized FCF yield for 2014. Since adding SIRI to the Americas Buy List on 12/17/12, shares are +39% vs. the S&P 500 +22%.”
Sirius XM Radio (NASDAQ:SIRI) traded down 4.12% during mid-day trading on Friday, hitting $3.749. 281,207,968 shares of the company’s stock traded hands. Sirius XM Radio has a 52-week low of $2.33 and a 52-week high of $3.88. The stock’s 50-day moving average is $3.7 and its 200-day moving average is $3.4. The company has a market cap of $23.279 billion and a price-to-earnings ratio of 52.13. Sirius XM Radio also saw some unusual options trading on Wednesday. Stock traders purchased 38,409 put options on the stock. This is an increase of 1,108% compared to the typical volume of 3,180 put options.
Sirius XM Radio (NASDAQ:SIRI) last announced its earnings results on Thursday, October 24th. The company reported $0.01 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.02 by $0.01. The company had revenue of $962.00 million for the quarter, compared to the consensus estimate of $969.49 million. During the same quarter in the prior year, the company posted $0.01 earnings per share. The company’s quarterly revenue was up 10.8% on a year-over-year basis. Analysts expect that Sirius XM Radio will post $0.09 EPS for the current fiscal year.
A number of other firms have also recently commented on SIRI. Analysts at Evercore Partners downgraded shares of Sirius XM Radio from an “overweight” rating to an “equal weight” rating in a research note to investors on Friday. Separately, analysts at FBR Capital Markets initiated coverage on shares of Sirius XM Radio in a research note to investors on Wednesday. They set an “outperform” rating and a $5.50 price target on the stock. Finally, analysts at Maxim Group reiterated a “buy” rating on shares of Sirius XM Radio in a research note to investors on Tuesday. They now have a $5.80 price target on the stock, up previously from $4.60. Six equities research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. Sirius XM Radio presently has a consensus rating of “Buy” and an average target price of $4.55.
Sirius XM Radio Inc broadcasts its music, sports, entertainment, comedy, talk, news, traffic and weather channels in the United States on a subscription fee basis through its two satellite radio systems.
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