- JPMorgan analyst Sebastiano Petti downgraded Sirius XM Holdings Inc SIRI to Neutral from Overweight with a price target of $7, down from $8, implying an 11.3% upside.
- The analyst cites "softening" annual car sales and rising capital expenditures for the downgrade following management comments at recent industry conferences.
- With the silicon shortage likely to become "more acute in the coming quarters," Petti reduced Sirius XM's 2022 self-pay net adds to 750,000 from 1.05 million.
- And with the SXM 9 and SXM 10 satellite builds commencing, he meaningfully increased his 2022-2024 Capex estimates to account for $480 million of spending over those three years.
- Petti now believes shares of Sirius XM are fairly valued.
- Price Action: SIRI shares traded lower by 2.23% at $6.15 in the premarket session on the last check Friday.
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