Commenting on quarterly results, Barrington analyst James Goss says Sirius XM key metrics continue to grow as business model evolves. The analyst notes that Sirius XM continues to offer an "excellent" business model with "solid" organic revenue growth and cash generation, with more opportunities to reach consumers through Pandora. Strong cash flow supports additional share repurchases, on which management is being aggressive, he adds. Goss also argues that the roughly 17M annual rate of new car sales remains at sufficiently healthy levels to support subscriber growth, as churn remains at near record low levels. He reiterates an Outperform rating and $8.50 price target on the shares.

Citi upgraded Sirius XM (SIRI) to Neutral from Sell with a price target of $3.30, down from $4.10. Over the last few months, the net asset value discount between Liberty SiriusXM (LSXMA) and Sirius XM has narrowed from 40% to 2%. To Citi's surprise, this occurred via a decline in Sirius XM's equity without appreciation in Liberty SiriusXM's value. The firm now finds the risk/reward in both securities as relatively balanced. As such, Citi upgraded Sirius XM from Sell to Neutral and downgraded Liberty SiriusXM from Buy to Neutral.

Pivotal Research upgraded Sirius XM (SIRI) to Buy from Hold with a price target of $4.90, down from $5.05. The magnitude of the decline in Sirius XM's valuation has been surprising, exacerbated by a current lack of institutional ownership and the fact most investors owned parent Liberty Sirius XM (LSXMK) to play the narrowing of the net asset value gap rather than as a way to invest in Sirius, the analyst tells investors in a research note. The firm says this has created an attractive investment opportunity, highlighted by the 55% upside to its new target price. It views Sirius as a free cash flow acceleration story.