Deutsche Bank keeps Buy on Sirius XM, lowers price target to $6.25

Deutsche Bank analyst Bryan Kraft lowered the firm’s price target on Sirius XM to $6.25 from $7.50 and keeps a Buy rating on the shares. A multitude of factors is shaping up to make 2023 a challenging year, the firm says. The decline in auto sales last year, off of what were already soft levels in 2022 and 2021, is limiting the number of new and used car trial starts, and consequently, lowering the number of conversion opportunities, Deutsche Bank argues. Adding to that pressure, management expects new car conversion rate to decrease to the low 30% range, versus what the firm believes has been the mid 30% range in recent quarters, further pressuring net adds.