BofA's 9 Takeaways On Sirius XM After CFO Chat

During the conference call, Sirius XM Holdings Inc’s 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.

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