Emphasis On Automation, New Products To Boost Sirius XM, Says Analyst - Sirius XM Holdings (NASDAQ:SIRI)

Benchmark analyst Matthew Harrigan reiterates Buy rating on Sirius XM Holdings Inc. SIRI, with a price target of $7.00.
The analyst notes that Sirius XM is poised to make broad foundational changes to enhance its product bouquet and marketing capabilities and emphasize automation to make it a "true direct-to-consumer company."
On April 4, the company announced that Thomas Barry, its long-term senior vice president controller/ chief accounting officer, will be replacing departing Chief Financial Officer Sean Sullivan by the end of this month.
The analyst thinks that despite the change in management, the company's financial policies and leverage posture should remain the same. The new chief financial officer is well-versed in Sirius XM's technology initiatives and will retain continuity in policies and automation emphasis.
Also Read: Sirius XM Lays Off 475 Employees On Completing Strategic Review
These apart, the analyst notes that the company is not "blindly focused" on average revenue per user and is trying to drive both rate and volume to maximize sales. In this regard, the company plans packages for only $5 monthly for streaming only, aimed at younger audiences.
Despite higher royalty costs, Sirius XM margins remain advantaged relative to other media businesses.
The analyst expects free cash flow to exceed 2022's $1.55 billion in 2025. In fact, Sirius XM has no debt maturities until 2026.
Price Action: SIRI shares are trading higher by 1.7% at $3.905 on the last check Wednesday.

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