Sirius XM: Strong Free Cash Flow, 360L Growth, and Undemanding Valuation Support Buy Rating

Sirius XM Holdings, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Patrick Sholl from Barrington maintained a Buy rating on the stock and has a $28.00 price target.

Patrick Sholl has given his Buy rating due to a combination of factors that highlight both solid current performance and attractive future potential. He notes that fourth-quarter revenue and EBITDA exceeded expectations, with better-than-anticipated self-pay subscriber additions driven in part by new companion plan offerings, even as total subscribers declined modestly year over year. While EPS was reduced by non-recurring impairments, underlying profitability remained strong, and management’s 2026 guidance points to stable revenue and margins alongside higher free cash flow, thanks to reduced capital spending.

Sholl also emphasizes the strategic benefits of SiriusXM’s 360L technology, which is now present in over half of Sirius-enabled new vehicles and provides richer data on listening behavior that can improve programming, retention, and advertising monetization—especially for ad-supported tiers and podcasts. He views the company’s robust free cash flow outlook as a key support for deleveraging and ongoing capital returns, including a dividend yielding about 5%. Combined with what he considers an undemanding valuation and a 12‑month price target that implies meaningful upside from current levels, these factors underpin his Outperform (Buy) recommendation on Sirius XM Holdings.

Sholl covers the Communication Services sector, focusing on stocks such as Quinstreet, Warner Bros, and Paramount Skydance. According to TipRanks, Sholl has an average return of 5.7% and a 39.17% success rate on recommended stocks.

In another report released today, TipRanks – xAI also upgraded the stock to a Buy with a $25.00 price target.