Sirius XM Signs Howard Stern to Three-Year Contract, Potential for Revenue Recovery Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Revenue Recovery Outlook: Analysts forecast a slight revenue growth for Sirius XM over the next three years, targeting $8.6 billion by 2028, which represents only a 0.8% increase from current levels, yet indicates a rebound in market confidence.
- Profitability Improvement: Projected earnings per share are expected to rise by 25% to $3.43, driven by aggressive stock buybacks and operational efficiencies, which could restore the company's overall profitability.
- Dividend Attractiveness: With a current dividend yield of 5.14%, Sirius XM's dividends are likely to continue growing alongside per-share profit increases, making the stock more appealing to investors.
- Berkshire's Influence: As Sirius XM's largest shareholder with a 37.1% stake, Berkshire Hathaway's investment decisions will significantly impact Sirius XM's stock price fluctuations, potentially becoming a key variable for future growth.
Analyst Views on SIRI
Wall Street analysts forecast SIRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SIRI is 22.75 USD with a low forecast of 18.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
2 Buy
2 Hold
4 Sell
Hold
Current: 21.030
Low
18.00
Averages
22.75
High
30.00
Current: 21.030
Low
18.00
Averages
22.75
High
30.00
About SIRI
Sirius XM Holdings Inc. is an audio entertainment company in North America. The Company has a portfolio of audio businesses, including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network, and a suite of business and advertising solutions. Its segments include Sirius XM and Pandora and Off-platform. The Sirius XM segment features music, sports, entertainment, comedy, talk, news, traffic and news channels and other content, as well as podcasts and infotainment services, in the United States on a subscription fee basis. Sirius XM's packages include live, curated, and certain exclusive and on-demand programming. The Pandora and Off-platform segment operates a music, comedy, and podcast streaming discovery platform, offering a personalized experience for each listener wherever and whenever they want to listen, whether through mobile devices, vehicle speakers or connected devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
