Analyst Explains Why They Upgraded Their Buy Rating on Sirius XM Holdings Inc


In a report released today, James Goss from Barrington upgraded Sirius XM Holdings Inc (NASDAQ: SIRI) to Buy, with a price target of $8. The company’s shares closed yesterday at $6.82.

Goss commented:

“We had maintained our top rating on SIRI for many years through the start of 2018. Since the collapse of its stock price in 2009 and its flirtation with bankruptcy following a financial crisis of its own as it attempted to refinance some debt following the merger of XM and Sirius that created the combined enterprise, the stock has traded relentlessly higher with only relatively brief periods of pause or decline. Increasing valuation metrics and a surprisingly burdensome royalty ruling around the turn of the current year caused us to feel a leveling in the stock price trend was likely. We moved our rating to MARKET PERFORM at that time, expecting more of a pause than an extended decline as management grappled with the surprising royalty issue.”

According to TipRanks.com, Goss is a 5-star analyst with an average return of 14.2% and a 68.3% success rate. Goss covers the Services sector, focusing on stocks such as Lions Gate Ent Corp Cl A, iPic Entertainment Inc, and Cinemark Holdings Inc.

Sirius XM Holdings Inc has an analyst consensus of Hold, with a price target consensus of $7.10, implying a 4.1% upside from current levels. In a report issued on June 14, Merrill Lynch also maintained a Buy rating on the stock with a $8 price target.

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Sirius XM Holdings Inc’s market cap is currently $30.56B and has a P/E ratio of 45.47. The company has a Price to Book ratio of -19.53.

Based on the recent corporate insider activity of 161 insiders, corporate insider sentiment is negative on the stock.

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Sirius XM Holdings, Inc. is a radio company. The company offers music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services. Its brand channels include SiriusXM Traffic, SiriusXM Travel Link, NavTraffic, NavWeather, SiriusXM Aviation, Sirius Marine Weather, XMWX Aviation, XMWX Marine, and SiriusXM Marine.

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