New Round of Rating on Sirius XM Holdings, Inc. (NASDAQ:SIRI) Diverges Again
A number of analyst firms issued recent ratings on Sirius XM Holdings, Inc. (NASDAQ:SIRI) stock and they were mostly divergent once again. Yesterday SIRI shifted 38 million shares and closed 0.29% up in the short pre-holiday session.
Zacks reiterated their “Neutral” rating on SIRI stock, yet their price target was set well above the closing price when the report came out. The report pegged SIRI to be headed for $3.75 and outlined the fact that the company met the Q1 bottom line Zacks expected and beat the top line estimate.
Analysts also highlighted a fact which is likely known to every SIRI shareholder – that the company’s performance is heavily dependent on car sales, especially new car sales, as SIRI is still expanding in the user car sector. In light of the speculation that Apple Inc. (NASDAQ:AAPL)’s CarPlay and Google Inc. (NASDAQ:GOOG)’s Android Auto will present a very serious obstacle for Sirius, Zacks also saw a ‘long-term positive’ in SIRI‘s $530 million acquisition of the Connected Vehicle Services branch of Agero.
At the same time, analysts with TheStreet upgraded SIRI to a “Buy”. Maxim Group sliced its optimistic price target for SIRI by more than a dollar, down to $4.45. SIRI met the Q1 earnings per share consensus of $0.02 on revenues of $998 million.
The company made the headlines of the tabloid press on both sides of the ocean just a few hours ago. Radio show host Anthony Cumia who has a show on Sirius XM raised a lot of ruckus on Twitter with controversial posts with strong racial overtones. Cumia claimed getting hit by a black woman multiple times after she got in the shot of a picture he was taking. The radio host posted quite an inflamed tirade in Twitter which caused significant backlash. According to reports, Sirius XM has not yet responded to inquiries on the subject.
This news is rather collateral to the dealings of the company and will hardly have any tangible impact on SIRI‘s share price when the markets open after the extended weekend.
