Update shared on 29 Nov 2025
Analysts have raised their price target for Sirius XM Holdings by $1, increasing it from $19 to $20. This change is based on updates to the company's model in light of new financial guidance.
Analyst Commentary
Bullish Takeaways- Bullish analysts are encouraged by the company's updated financial guidance, which reflects confidence in its ongoing operations and market position.
- The price target increase suggests expectations of improved revenue growth or profitability in the coming quarters.
- Updates to the financial model indicate analysts anticipate enhanced execution on Sirius XM's strategic initiatives.
- There is optimism that positive momentum could continue. This could support the potential for additional valuation upside if targets are met.
- Despite the price target raise, some analysts maintain a cautious view on the stock's valuation and highlight that upside may be limited relative to peers.
- Persistent concerns remain regarding the company's subscriber growth in a competitive audio streaming market.
- Bears point to an Underweight rating as a sign that risk factors such as slower adoption of new products or high operating expenses could impact performance.
What's in the News
- Netflix has approached SiriusXM about a potential deal to license its video podcasts. This could involve exclusivity and may represent a new area of growth for SiriusXM (The Hollywood Reporter).
- Howard Stern has renewed his contract with SiriusXM and will remain with the company for several more years (Variety).
- Howard Stern publicly expressed that he is very happy at SiriusXM. No new contract details were announced at that time (Variety).
Valuation Changes
- Fair Value: Remains unchanged at $24, reflecting analysts' steady outlook on intrinsic value.
- Discount Rate: Declined slightly from 8.67% to 8.65%. This indicates a minor reduction in perceived risk or cost of capital.
- Revenue Growth: Steady at approximately 16.1%. This signals consistent expectations for top-line expansion.
- Net Profit Margin: Essentially unchanged at 13.14%. This suggests margin projections remain stable.
- Future P/E: Increased modestly from 8.95x to 9.00x, which points to a slightly higher valuation multiple on projected earnings.
Disclaimer
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