Liberty Sirius XM Group (LSXMK – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Jeffrey Wlodarczak from Pivotal Research remains neutral on the stock and has a $41.00 price target.
Jeffrey Wlodarczak of Pivotal Research firm recommends a Buy rating for Liberty Sirius XM Group’s stock (LSXMK) due to various factors. After reviewing the Q3 results and updating their valuation methodology, Wlodarczak kept the year-end 2023 target price at $41, which suggests about 60% upside from the current levels. The majority of LSXMK’s valuation is driven by its approximately 84% stake in SIRI, a company that performed better than expected with its Q3 financial results. Wlodarczak also noted that LSXMK has proposed a merger with SIRI, which could offer a modest premium in SIRI shares for LSXMK shareholders. This merger is expected to be completed by mid-2024, further adding to LSXMK’s value.
Wlodarczak also emphasized that LSXMK, as the majority shareholder of SIRI, stands to benefit from any negotiated benefits to SIRI shareholders. Currently, LSXMK is trading at a nearly 40% discount to NAV, implying about 50% upside from owning LSXMK over SIRI based on current SIRI share prices. The analyst also predicts that LSXMK can grow EBITDA post-2023 at around a 5% CAGR, with high conversion to free cash flow. Furthermore, he mentioned the possibility of Liberty and SIRI announcing a merger, which would likely eliminate the NAV gap and make LSXMK’s stock more attractive. Overall, Wlodarczak believes the risk-reward in LSXMK shares for the next six months appears very appealing.
According to TipRanks, Wlodarczak is a 4-star analyst with an average return of 1.8% and a 53.55% success rate. Wlodarczak covers the Communication Services sector, focusing on stocks such as Liberty Sirius XM Group, Sirius XM Holdings, and Liberty Media Liberty Formula One.
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Liberty Sirius XM Group (LSXMK) Company Description:
Liberty Media Corp. Liberty Braves owns a professional baseball club. The company is headquartered in the United States.
Read More on LSXMK:
- Liberty SiriusXM reports Q3 revenue $2.27B, consensus $2.3B
- Is LSXMK a Buy, Before Earnings?
- Seaport media/entertainment analyst holds analyst/industry conference call
- Liberty Sirius XM price target raised to $41 from $34 at Pivotal Research
- Barrington stays Outperform on Sirius as Liberty bids to solve structural issue
