Sirius XM price target lowered to $5 from $5.50 at Wells Fargo

Wells Fargo lowered the firm’s price target on Sirius XM to $5 from $5.50 and keeps an Equal Weight rating on the shares after the company reported Q3 self-pay net adds declined 96,000. While Sirius will be launching a next-gen digital product next week and the firm thinks this will improve the streaming-only app experience and in-car usage via Android Auto and Apple Carplay, Wells says it will take some time to show up in metrics like self-pay net adds. While its EBITDA and free cash flow estimates are slightly higher, the firm’s net adds are lower through the transition and Wells sees net adds as “the biggest driver of valuation,” the analyst tells investors.