BofA's Takeaways On Sirius XM Radio Following Telecom, Media Conference

Bank of America analysts shared their key takeaways of Sirius XM Holdings Inc. SIRI from the global telecom and media conference. The brokerage reiterated its Buy rating and kept a price target of $5.00 on shares.

Analysts also see Sirius focusing on driving growth. Some of the key takeaways included confidence in the company's revised net addition guidance of 1.6 million, initiatives to better position itself in the used car market, commitment to 10 percent capital return yield, disciplined M&A investments, new opportunities provided by SXM17 and laser-focus on premium content.

The analysts expect Sirius new satellite/IP platform, to be commercially available late next year or early 2018. The analysts viewed, "We believe the Interactivity / two-way platform will not only help mitigate subscriber churn (due to enhanced marketing capabilities), also improve marketing yield as well as programming / content proficiencies. We view the latter as particularly beneficial given SIRI's commitment to premium curated content across all generes."

The brokerage is confident about Sirius' ability to capitalize on the used car opportunity. The company expects to capture 40 percent used car sales due to a doubling in the Sirius-enabled fleet. Similarly, the analysts viewed that the institution of a dividend would not only signal stability to the market but also boosts the shareholder base.

The analysts think the recapitalization of the company's Canada exhibited its disciplined approach to M&A given the accretive nature of acquisition tactics and the synergy.