Wunderlich Downgrades Sirius XM (SIRI)

NEW YORK (TheStreet) -- A day after celebrating record revenue over fiscal 2013, Sirius XM (SIRI) has received a spot of bad news. The satellite radio broadcaster has been downgraded by Wunderlich from "buy" to "hold." The ratings change is based on a valuation call on a $3.80 price target. 

On Tuesday, the company achieved record revenue that rose 12% for the year to $3.8 billion and 12% for the December-ended fourth quarter to $1 billion. 

Total sales exceeded analysts' full-year and fourth-quarter expectations of $3.78 billion and $981.9 million, respectively, according to Thomson Reuters estimates.

Management reiterated existing 2014 guidance of revenue of more than $4 billion and net subscriber additions totaling 1.25 million.

TheStreet Ratings team rates SIRIUS XM HOLDINGS INC as a Buy with a ratings score of B. The team has this to say about their recommendation:

"We rate SIRIUS XM HOLDINGS INC (SIRI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

More from Markets

AMD Shares Explode After Solid Q1, Robust Outlook That Defies Chip Sector Gloom

AMD Shares Explode After Solid Q1, Robust Outlook That Defies Chip Sector Gloom

Stocks Rise, Nasdaq Jumps as Facebook Rallies

Stocks Rise, Nasdaq Jumps as Facebook Rallies

Facebook Stock Set for Biggest Gain in Two Years After Q1 Earnings Top Forecasts

Facebook Stock Set for Biggest Gain in Two Years After Q1 Earnings Top Forecasts

Earnings, Earnings and More Earnings - Your Midweek Update From Facebook to Ford

Earnings, Earnings and More Earnings - Your Midweek Update From Facebook to Ford

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk