Sirius XM price target lowered to $4 from $4.90 at Pivotal Research

Pivotal Research analyst Jeffrey Wlodarczak lowered the firm’s price target on Sirius XM to $4 from $4.90 and keeps a Buy rating on the shares. The company reported a “mixed” Q2 with modestly better than expected self-pay subscriber losses but lower than expected revenue, in part due to the effects of lower priced out of car digital offerings, the analyst tells investors in a research note. The firm adds however that longer term, Sirius is a “free cash flow growth story”, with a decent moat around their core in car business model and stable EBITDA with very high EBITDA to free cash flow conversion, which will become increasingly apparent as temp capex related to the replacement of their existing satellite system dissipates over the coming years.