Sirius XM downgraded to Sell from Buy at Citi

Citi analyst Jason Bazinet double downgraded Sirius XM (SIRI) to Sell from Buy with a price target of $6, down from $7. Once Liberty creates Liberty Live Nation in 2023, the analyst expects Sirius to enter into a share exchange with the new Liberty SiriusXM (LSXMA). He expects Sirius XM’s share count to decline by 10% but that its leverage will increase to 4.8-times debt-to-EBITDA. As a result, the Street will pivot from levered free cash flow to enterprise value to EBITDA as the primary valuation metric, Bazinet tells investors in a research note.