Wells Fargo analyst Steven Cahall maintained a Sell rating on Sirius XM Holdings yesterday and set a price target of $19.00.
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Steven Cahall has given his Sell rating due to a combination of factors impacting Sirius XM Holdings. The company is experiencing pressures in its advertising segment, particularly with Sirius XM and Pandora, as advertisers are cutting digital spend amid macroeconomic concerns. This weakness in advertising could pose a risk to the company’s revenue and adjusted EBITDA guidance, which are crucial for its high-margin business.
Additionally, while there is potential value in the company’s spectrum holdings, the realization of this value is still several years away. Cahall’s valuation adjustments, which include spectrum monetization, lead to a price target of $19 per share. Despite these adjustments, the overall outlook remains cautious due to limited cost-cutting opportunities and weaker demand in the latter half of the year, prompting the Sell rating.
Cahall covers the Communication Services sector, focusing on stocks such as Comcast, Spotify, and Fox. According to TipRanks, Cahall has an average return of 7.4% and a 54.60% success rate on recommended stocks.
In another report released on June 26, Bank of America Securities also reiterated a Sell rating on the stock with a $21.00 price target.