Liberty SiriusXM downgraded to Neutral from Buy at Citi

Citi downgraded Liberty SiriusXM (LSXMA) to Neutral from Buy with a price target of $28, down from $35. Over the last few months, the net asset value discount between Liberty SiriusXM and Sirius XM (SIRI) 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.