BofA's 9 Takeaways On Sirius XM After CFO Chat

Priya Nigam
·2 min read

During the conference call, Sirius XM Holdings Inc’s (NASDAQ: SIRI) Chief Financial Officer David Frear provided an optimistic outlook, and he's done so throughout the coronavirus crisis, according to BofA Securities.

The Sirius XM Analyst: Jessica Reif Ehrlich maintained a Buy rating on Sirius XM Holdings with an unchanged $7.50 price target.

The Sirius XM Takeaways: The company seems well-positioned to capitalize on increasing podcasting trends and a growing digital audio entertainment market, Ehrlich said in a Thursday note.

The analyst named nine takeaways from the call:

  • Following the acquisitions of Pandora, AdsWizz, Stitcher and Simplecast and an investment in SoundCloud, Sirius XM is now well-positioned to gain share in the growing digital audio entertainment advertising market.

  • The company now offers a complete range of ad tech capabilities, including content hosting, data analytics and sales representation to digital audio companies and audio marketers.

  • The satellite business has remained resilient through the downturn, with churn being kept in check by increased device usage.

  • Sirius XM witnessed “historically low non-pay churn,” helped by lower consumer spending in other areas.

  • The company’s free streaming offer in May and June was successful.

  • With Howard Stern renewing his contract, a decision is unlikely until the fourth quarter.

  • The entry of non-traditional “talk show” talent into the podcasting arena should help Sirius XM contain costs.

  • 360L is ramping well and will eventually include targeted advertising.

  • The next large capital expenditure by the company is three years away.

SIRI Price Action: Shares of Sirius XM Holdings were trading down 1.07% at $6.02 at last check Thursday.

Related Links:

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ROCE Insights For Sirius XM Holdings

Latest Ratings for SIRI

Aug 2020

Citigroup

Maintains

Buy

Jul 2020

Deutsche Bank

Maintains

Buy

Jun 2020

Morgan Stanley

Maintains

Equal-Weight

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