Sirius XM reinstated with an Underweight at JPMorgan

JPMorgan reinstated coverage of Sirius XM with an Underweight rating and $20 price target following a period of restriction. The firm views the recently closed acquisition of Liberty Sirius favorably due to improved trading dynamics, potential index inclusion long-term, and the 12% share count reduction “despite the uptick in leverage and commensurate impact on buybacks.” However, JPMorgan still struggles with Sirius XM’s long-term growth algorithm given uncertainty around sustainable long-term self-pay subscriber growth as well as app benefits.