- SiriusXM ( NASDAQ: SIRI ) was downgraded by investment firm Rosenblatt Securities on Wednesday, citing "subpar" new and used car sales.
- Analyst Barton Crockett lowered his rating to neutral from buy, noting that SiriusXM ( SIRI ) is guiding towards a "modest decline" in subscribers for 2023 as a result of weak new and used car sales, which should lead to flat revenue growth and declining EBITDA and free cash flow.
- The company is also being impacted by a one-time payment of nearly $100M for pre-1972 song royalty payments, a 9% CPI inflator for streaming music fees and and an increase in spending for new satellite launches through 2027, Crockett added.
- SiriusXM ( SIRI ) shares were fractionally lower in premarket trading on Wednesday.
- Earlier this month, SiriusXM ( SIRI ) reported mixed fourth-quarter results and provided 2023 revenue guidance below estimates .
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SiriusXM downgraded by Rosenblatt on worries over car sales