Goldman Sachs analyst Stephen Laszczyk has maintained their bearish stance on SIRI stock, giving a Sell rating on January 12.
Stephen Laszczyk has given his Sell rating due to a combination of factors impacting Sirius XM Holdings. The anticipated focus for the upcoming 4Q23 financial results includes subscriber and financial trends, initial guidance for 2024, and an update on the company’s new streaming-only strategy. Laszczyk’s analysis indicates a conservative outlook on the company’s ability to increase revenue, EBITDA, and Free Cash Flow in 2024, taking into account the challenges in raising prices on full-priced plans and an unclear future for advertising budgets in the year ahead.
Furthermore, while the forecasts for the fourth quarter of 2023 regarding Self-Pay Net Adds, Revenue, Adjusted EBITDA, and Free Cash Flow remain largely unchanged, there is a slight downward adjustment reflecting these concerns. The restrained growth in Average Revenue Per User (ARPU) contributes to the cautious stance, suggesting that the company’s room to maneuver in terms of pricing is limited. This, combined with the uncertainty surrounding the advertising industry’s recovery, supports the Sell recommendation and underscores the potential risks facing Sirius XM Holdings in the near term.
Laszczyk covers the Communication Services sector, focusing on stocks such as IMAX, Live Nation Entertainment, and Warner Music Group. According to TipRanks, Laszczyk has an average return of 5.8% and a 72.73% success rate on recommended stocks.
In another report released on January 12, Citi also maintained a Sell rating on the stock with a $4.10 price target.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Sirius XM Holdings (SIRI) Company Description:
New York-based Sirius XM Holdings, Inc. is a radio company, which provides satellite radio services on a subscription fee basis. The company offers music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services. Its brand channels include SiriusXM Traffic, SiriusXM Travel Link, NavTraffic, NavWeather, SiriusXM Aviation and SiriusXM Marine.
Read More on SIRI:
- Sirius XM price target lowered to $5.30 from $5.60 at Pivotal Research
- Pivotal calls Liberty Sirius XM most attractive risk/reward under coverage
- Berkshire Hathaway (NYSE:BRK.B) Goes Big on SiriusXM Tracking Stock
- Largest borrow rate increases among liquid names
- Sirius XM price target raised to $4.10 from $3.60 at Citi
