Shares of Sirius XM Holdings Inc. dropped 1.9% in morning trade Wednesday to a two month low, after Morgan Stanley turned bearish on the satellite radio company, saying the recent stock rally wasn’t fundamentally justified. The stock close has shed nearly 9% since closing at an 11-year high of $5.44 on March 13, but was still up 12% year to date while the S&P 500 has gained 4.9%. Morgan Stanley Analyst Ben Swinburne cut his rating to underweight, given that the shares have rallied recently “despite evidence that the business is maturing and growth is slowing.” He believes the late new car channel no longer adds materially to Siri’s subscription base, while his analysis of the used car channel suggests growth has peaked.
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