Shares of Sirius XM Holdings Inc.
slid 3.8% towards a six-week low in morning buying and selling Friday, after J.P. Morgan analyst Sebastiano Petti turned bullish on the satellite tv for pc radio firm, amid continued weak point in U.S. auto gross sales as semiconductor shortages and provide chain points crimp provide. The inventory is on observe to snap a six-day win streak, which might be the longest such streak in 10 months. Petti reduce the inventory’s ranking to underweight from impartial, and lowered the worth goal to $6 from $7. “We anticipate [Sirius’] preliminary 2022 self-pay internet add information to mirror a higher-than-usual stage of conservatism given the unsure new auto gross sales setting because the auto business continues to work via chip shortages and different provide chain points,” Petti wrote in a be aware to shoppers. The slower-growth outlook led him to decrease his 2022 estimate totally free money circulation, which additionally suggests lowered share repurchases. The corporate is anticipated to report fourth-quarter outcomes on Feb. 1. Whereas an anticipated announcement of a particular dividend, which he expects to be 25 cents a share, might enhance investor sentiment, “a slower buyback tempo is more likely to weigh on shares.” The inventory has gained 1.5% over the previous three months, whereas the S&P 500
has superior 4.8%.

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