Barrington analyst James Goss has reiterated their bullish stance on SIRI stock, giving a Buy rating today.
James Goss has given his Buy rating due to a combination of factors including Sirius XM Holdings’ strategic initiatives and performance metrics. Despite a challenging environment, there are positive signs such as an increase in auto sales which may lead to lower churn rates going forward. Additionally, the introduction of a new streaming product aimed at broadening the service’s appeal to younger demographics shows promise in terms of user engagement, despite the risks of cannibalization and potential pressure on average revenue per user (ARPU).
Moreover, Goss acknowledges the growth in advertising and subscription revenues, particularly highlighting a 16% increase in podcast advertising. This suggests that Sirius XM is successfully capitalizing on the growing podcast market. While acknowledging headwinds such as higher leverage and stalled profitability, Goss believes the stock’s current valuation has fallen too far, presenting an opportunity for a rebound. The company’s efforts to stimulate growth in key profit metrics and a solid dividend yield of 3.5% also contribute to the positive outlook, notwithstanding the near-term increase in leverage expected from the pending Liberty transaction.
In another report released today, Seaport Global also reiterated a Buy rating on the stock with a $4.00 price target.
Based on the recent corporate insider activity of 112 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SIRI in relation to earlier this year.
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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.
