Sirius XM: Peak Auto Doesn’t Matter Here!

Sirius XM Holdings Inc. NASDAQ: SIRI) received its most bullish analyst call on Wall Street this week, with a new street-high price target being issued on Wednesday (July 11). Unfortunately, this big call came out on the day the market was down big on more trade war fears after President Trump targeted $200 billion more in goods for tariffs. Credit Suisse’s Brian Russo issued a new Outperform rating and an $8.50 price target that was 50 cents above the prior street-high target.

Despite high competition, the driving force here is a continued execution by management, stable competition and a strong stock buyback, as well as numerous other issues, to drive an implied upside of more than 20%, if the call proves accurate.

Sirius XM shares are down almost 10% from their 52-week high of $7.70, and the stock did not even trade up 1% by the end of the week. For one of the most heavily shorted stocks of them all, it was surprising that this street-high analyst call was ignored almost entirely.

Syndax: Financial Nektar from Melanoma

Syndax Pharmaceuticals Inc. (NASDAQ: SNDX) was given a call for exponential upside, and any excitement around this call quickly dissipated. Syndax, which is a mostly unheard of clinical-stage biotech company targeting cancers, recently announced that it and Nektar Therapeutics entered into an immuno-oncology clinical trial collaboration for metastatic melanoma.

H.C. Wainwright started the stock with a Buy rating and assigned a $30 price target on Thursday (July 12). This was a small $175 million market cap company, but the price target in this call implied some 300% upside from the previous $7.10 closing price; it was trading at $7.20 late on Friday. Syndax shares were indicated up 10% after the call, but the stock was up just 2% and the trading volume on Thursday was barely above the daily average volume.

For a reference, Syndax Pharma has a 52-week range of $6.61 to $15.20. Also worth noting is that its shares were down roughly 20% in May around Phase 2 data presented around one of its studies with Keytruda.

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As a reminder, analyst calls are simply one opinion among many factors that investors have to consider. There are no assurances at all that the upside (or downside) scenarios will pan out, and it is no secret that a major market sell-off from broader topics will wipe out the upside from even the best research insight of them all. Investors should only use calls of this sort as a starting point for any true investing decisions, and many of the more speculative companies are only applicable to most aggressive investors who can tolerate much more risk than retirees and conservative investors. As always, caveat emptor!