Sirius XM To Report Earnings Tomorrow, Wunderlich Raises PT To $2

Wunderlich Securities has published a research report on Sirius XM Radio SIRI in anticipation of the company's earnings release tomorrow. In the report, Wunderlich writes "We are maintaining our Buy rating on SIRIUS XM Radio (SIRI) and raising our target to $2 from $1.75, with further adjustments possible after tomorrow's earnings release and presumed guidance. We provide a new gaggle of sensitivity analysis with respect to U.S. auto sales, penetration of the previously-owned-vehicle market, (critical to continued share upside) ARPU growth, and the LT disruptive effect of Pandora and other in-car alternatives, while noting that SIRI is not a stranger to in-car competition. Pandora is apt to get even more notoriety after having just filed for an IPO. Our model now also allows for share repurchases post 2011 with a 2.5x net debt target ratio." Wunderlich maintains its Buy rating and has raised the price target from $1.75 to $2. Sirius XM Radio closed Friday at $1.84.