Sirius XM Holdings Inc. (NASDAQ:SIRI) Gets Upgraded By Analysts
Sirius XM Holdings Inc. (NASDAQ:SIRI)’s stock is about 18% down from its 52 week high of $4.18 as on yesterday it closed at $3.43. Its 52 week low is of $2.88. Yesterday 70.56 million shares were traded during the session as compared to 49.26 million shares traded over past 30 days, on an average. With RSI value of 30.33 the stock is trading around oversold territory and the recent sell off in this stock has been viewed as an attractive entry point for investors, by Matthew Harrigan, an equity research analyst at Wunderlich.
In a recent research note issued on Thursday, research firm Wunderlich upgraded its rating for the stock of Sirius XM Holdings Inc. (NASDAQ:SIRI) from “hold” to “buy”. However the analyst trimmed the price target for the stock from $4.50 to $4.20.
Research analyst Matthew Harrigan emphasized on satellite radio broadcaster’s strategy to integrate its product in cars through striking deals with all possible major car makers. Harrigan identified rival operator Spotify’s free mobile app as well as self-driving cars as the potential threats for Sirius XM Holdings Inc. (NASDAQ:SIRI)’s Sirius XM Radio.
However, Harrigan defended Sirius XM Radio’s edge as he quoted Tesla Motors Inc. (NASDAQ:TSLA)’s CEO Elon Musk who is of opinion that “it will be difficult to enable computers to drive cars.” Harrigan also quoted Spotify’s in-car system as “overhyped” given the poor audio quality of such systems.
SiriusXM’s In-car Competitor
Pandora Media Inc. (NYSE:P) is closing in to compete with Sirius XM Holdings Inc. (NASDAQ:SIRI)’s in-car systems that include partnerships with more than 20 car brands. Moreover the company is expecting to have its in-built streaming services in more than 30% of all cars sold this year.
However, Sirius XM Holdings Inc. (NASDAQ:SIRI) is still the leader in this space with its satellite radio being installed in 54 million cars and expected to hit 100 million mark by 2017. The company holding ties with almost every major automaker, recently reported that just 2% users drop the service after its three-month trial period.