Sirius downgraded to equal weight at Wells Fargo, citing 'auto volatility'
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Sirius XM (NASDAQ:SIRI) is being downgraded to equal weight from overweight at Wells Fargo, with a $7 price target, as the investment firm believes self-pay net additions will be "understandably weaker" in 2022.
Analyst Steven Cahall lowered his rating on Sirius XM (SIRI) and reduced his estimates for self-pay net additions in 2022 to 600,000, down from 674,000.

He added that Sirius (SIRI) financial guidance for 2022 could be approximately 500,000 self-pay net additions, but the company typically guides conservatively and has beat and raised expectations throughout the year. This year, however, the beats could "slip" if auto inventories continue to remain tight because of global supply chain problems.
Sirius XM (SIRI) shares are down nearly 1% to $6.30 in early Tuesday trading on back of the downgrade. Sirius (SIRI) shares have gained slightly more than 3% over the past year.
Despite the downgrade, Cahall said he is a big fan of the business model and the management team, adding that there is the potential for special dividends and the opportunity for digital expansion.
"While we're taking a more neutral stance on 2022 we still see SIRI as a stock with upside opportunity, and limited downside given the strong and consistent earnings," Cahall added.
The analyst added that increased use of the SiriusXM app and a return to growth in monthly active users for Pandora could help the stock.
Last month, Sirius XM (SIRI) and Discovery (NASDAQ:DISCA)
announced that they would partner for subscription offers.