Sirius XM Holdings, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Cameron Mansson-Perrone from Morgan Stanley maintained a Sell rating on the stock and has a $22.00 price target.
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Cameron Mansson-Perrone has given his Sell rating due to a combination of factors that influence Sirius XM Holdings’ financial outlook. Although recent policy changes have slightly improved the macroeconomic environment, reducing some cyclical risks, there are still more attractive opportunities in the Telecom and Cable Services sector. The improved outlook has led to a modest increase in free cash flow estimates, but these changes are not significant enough to alter the company’s path towards its target net leverage.
Despite the positive developments, such as the expanded bonus depreciation rules that lower cash tax expectations and slightly boost free cash flow, the fundamental challenges remain. The advertising market and US auto sales have shown resilience, reducing immediate cyclical risks, but secular pressures persist. The stock price has already seen an increase, potentially factoring in the benefits from recent legislative changes, and the company’s focus on de-leveraging until the second half of 2026 limits its growth potential in the near term.
According to TipRanks, Mansson-Perrone is a 4-star analyst with an average return of 19.8% and a 69.23% success rate.
In another report released on July 2, Wells Fargo also maintained a Sell rating on the stock with a $19.00 price target.