Sirius XM downgraded to Neutral at BofA after ‘disappointing’ guidance

BofA analyst Jessica Reif Ehrlich downgraded Sirius XM to Neutral from Buy with a price target of $5.80, down from $7.50, after the company reported "mixed" results and gave disappointing 2023 guidance. The outlook communicated includes expectations for "modestly negative self-pay net adds for the year," revenue of about $9B, which was below the firm’s $9.3B forecast, and free cash flow to decline 32% year-over-year, the analyst tells investors. While noting that the company has a history of providing conservative guidance, the firm said it "cannot recall a period in which the company guided to subscriber losses," at least over the past decade, while its EBITDA and free cash flow guidance both point to year-over-year declines.