Exploring the Value of Sirius XM (SIRI) Following New Vehlo Partnership to Expand Subscriber Reach

Sirius XM Holdings (SIRI) shares climbed following the company’s announcement of a partnership with Vehlo. This collaboration enables auto service customers to access complimentary three-month SiriusXM trials, which could broaden SiriusXM's reach among potential subscribers.

See our latest analysis for Sirius XM Holdings.

This Vehlo partnership marks a rare bright spot for Sirius XM, which has struggled to regain momentum after a tough year. Although the 1-day share price return was 2.54% following the news, longer-term performance has been weak. The 1-year total shareholder return was -14.6%, reflecting ongoing competitive pressures and subscriber declines. Over the last three years, total shareholder returns have dropped by more than 60%, which underscores that sentiment remains cautious despite short-term rallies.

If this turnaround effort has you considering what else could be on the move, it might be the perfect opportunity to broaden your outlook and discover fast growing stocks with high insider ownership

With shares lagging over the past year and a new growth initiative on the table, the question now is whether the market is overlooking Sirius XM’s value or if its future challenges have already been priced in.

Most Popular Narrative: 6.1% Undervalued

Sirius XM’s narrative-based fair value sits above the last close price, suggesting more upside than the market currently prices in. This view sets the stage for one of the core drivers behind the bullish outlook.

SiriusXM is expanding its suite of in-car and digital subscription offerings, notably with the launch of the new ad-supported SiriusXM Play plan. The company aims to tap into a pool of up to 100 million vehicles and reach more price-sensitive listeners. This expanded addressable market and improved packaging is likely to boost revenue and support subscriber growth in 2026 and beyond.

Read the complete narrative.

The most popular narrative backing this valuation relies on a bold forecast: Sirius XM’s profitability turnaround, expanding audience, and a future earnings multiple that is well below the industry norm. Want to see the surprising assumptions behind this potential re-rating? Dive in to discover the key ingredients fueling this “undervalued” story.

Result: Fair Value of $23.64 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Sirius XM still faces declining revenue and growing competition from dominant streaming platforms. Both of these factors could threaten the bullish narrative.

Find out about the key risks to this Sirius XM Holdings narrative.

Build Your Own Sirius XM Holdings Narrative

If you see things differently or want to investigate Sirius XM's story on your own terms, you can create a personalized narrative in just a few minutes. Do it your way

A great starting point for your Sirius XM Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Investment Ideas?

Smart investors never stick to one story. Open new doors for your portfolio and stay ahead as market opportunities emerge with our tailored screeners below.

• Unlock the potential of the next breakout innovators with these 24 AI penny stocks. These companies are pushing boundaries in artificial intelligence and redefining multiple industries.
• Tap into steady passive income streams by checking out these 17 dividend stocks with yields > 3%. These options offer solid yields and reliable payout histories.
• Accelerate your search for high-upside plays by reviewing these 3574 penny stocks with strong financials, which are growing fast and shaking up their markets.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com