Wunderlich Reports Rally Into Earnings For Sirius XM

In a report published by Wunderlich, Sirius XM Radio SIRI saw another rally into earnings. Wunderlich said that Hold-rated Sirius XM (SIRI) is releasing earnings the morning of May 3 pre-open. “We anticipate results to be at least in line with consensus. We continue to emphasize long-term normalization of U.S. vehicle sales and conversion rates rather than Howard Stern litigation or auto sales aberrations off Japanese output and parts supply chain noise. However, these elements can still have a subjective trading influence that limits the short-term valuation premium. We are skeptical that management will raise guidance, particularly as U.S. gas prices accelerate. High-beta retail-oriented SIRI surprisingly has not been very strong through the recent market rally but we would not chase it here. ” Sirius XM Radio closed yesterday at $1.98.