Sirius XM Is 'Recession-Resistant Port In Tariff Storm': Analyst

Sirius XM Holdings Inc SIRI has a stable business model that is based on recurring subscription revenues, which makes it a "recession-resistant port in the tariff storm," according to Seaport Research Partners

The Sirius XM Holdings Analyst: Analyst David Joyce upgraded the rating from Neutral to Buy, while keeping the price target unchanged at $27.

The Sirius XM Holdings Thesis: The company's business model makes subscribers "sticky" and its recurring subscription revenues are 100% US, Joyce said in the upgrade note.

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Sirius XM Holdings is likely to generate around 13% growth in free cash flows this year and the next, he added.

"We believe any tariff impacts on car sales would have a de minimis impact on 2025 operations (as it would generally take at least a quarter for a gross addition to turn into revenue post-conversion)," the analyst wrote.

The company faces a soft ad environment, with ad budgets continuing to shift to digital video. However, only around 20% of its revenue has exposed to advertising, Joyce stated.

Given its healthy free cash flow growth, Sirius XM Holdings is likely to continue offering a "telco-like 5% dividend yield," he added.

SIRI Price Action: Shares of Sirius XM Holdings had risen by 3.62% to $20.04 at the time of publication on Wednesday.

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