Analyst Matthew Harrigan of Benchmark Co. maintained a Buy rating on Sirius XM Holdings, with a price target of $28.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Matthew Harrigan has given his Buy rating due to a combination of factors that suggest long-term potential for Sirius XM Holdings. Despite the current lack of immediate catalysts, the stock is considered undervalued, with a price target of $28. Harrigan anticipates a full recovery to nearly $2.7 billion in adjusted operating income by 2028, supported by significant cost savings initiatives. The company is expected to maintain a sustainable double-digit free cash yield, with potential for low double-digit growth in adjusted operating income through various product and marketing strategies.
Moreover, Sirius XM’s leadership in North American audio entertainment, particularly in sports and talk, remains strong, even amidst challenges like new vehicle affordability and potential tariffs. The company’s innovative approach in audio advertising technology, including partnerships for AI-generated voice replicas, further strengthens its position. While new car sales fluctuations may impact short-term metrics, the focus on pricing power and customer retention is expected to drive long-term value, supported by a substantial self-pay subscriber base.