Bank of America Securities analyst Jessica Reif Ehrlich maintained a Sell rating on Sirius XM Holdings today and set a price target of $20.00.
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Jessica Reif Ehrlich’s rating is based on several factors impacting Sirius XM Holdings’ performance. Despite historically low subscriber churn and efforts to enhance value through new pricing and packaging, the company faces challenges in the latter half of 2025. Reduced marketing for streaming services is expected to exert pressure on subscriber numbers, particularly as Sirius XM introduces an ad-supported service at lower price points, which may not fully compensate for the loss of full-rate package revenue.
Advertising revenue has shown some improvement, with increased demand from key categories and sponsorship of live events providing a modest boost. However, the abundance of connected TV inventory is putting pressure on pricing for Pandora’s streaming advertising, limiting growth potential. While there are slight positive adjustments in revenue and EBITDA estimates for the third quarter, the overall financial outlook remains largely unchanged, with significant challenges anticipated in reigniting subscriber growth and maintaining advertising momentum.
Reif Ehrlich covers the Communication Services sector, focusing on stocks such as Charter Communications, iHeartMedia, and Warner Bros. According to TipRanks, Reif Ehrlich has an average return of 9.4% and a 52.76% success rate on recommended stocks.