Wunderlich Maintains Hold on Sirius XM Radio (SIRI)

Wunderlich is out with its report today on Sirius XM Radio SIRI, maintaining Hold. In a note to clients, Wunderlich writes, "We continue to believe that investors should focus on long-term normalization of U.S. vehicle sales and conversion rates rather than the 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. In our March 23 downgrade, we doggedly reduced our target enterprise valuation by a dollar amount that greatly exceeds the likely boundary of litigation outcomes. However, in our view the still-fuzzy One Twelve, Inc. lawsuit is a tipping point that layers on to uncertainty relative to the consumer and more visible in-vehicle competition." At the time of posting, shares of SIRI were trading at $1.71, up 0.59% from Thursday's close.