Goldman Sachs analysts upgraded Sirius XM Radio (NASDAQ:SIRI) to a Neutral from a Sell, setting a new price target of $3.25, down from $3.50, following the company’s Q1 results.

The analysts mentioned that the downgrade was due to the stock's recent underperformance, which showed a 46% drop year-to-date, compared to a 6% rise in the S&P 500.

The analysts acknowledged ongoing concerns about increasing competition in premium audio services, which could slow subscriber and ARPU growth. However, they noted that the market now more broadly recognizes these concerns, leading to a valuation adjustment that offers a more balanced risk and reward.