The shares of satellite radio provider Sirius XM have had a slumping run in 2024, and they currently sit 54.55% down year-to-date. However, Guggenheim analyst Curry Baker is optimistic about the company’s future and predicts its shares will soon rebound.
In a note shared with clients, Baker upgraded the Sirius XM stock from “Neutral” to “Buy” while highlighting the company’s improving subscriber numbers and its stability in terms of operating trends and free cash flow.
Baker also raised its price target on the stock from $29 per share to $30 per share. If his target is reached, it would represent more than a 20% gain compared to Friday’s close price of $24.95.
A lot of other Wall Street analysts remain bullish on Sirius XM. According to the Wall Street Journal’s tracker, five analysts have a “Buy” rating on the stock, four rated it “Hold,” one analyst has an “Underweight” rating, and two analysts have a “Sell” rating. The highest price target is set at $65 per share, the lowest is at $23, while the average price target stands at $35.70 per share.
For its second quarter of 2024, Sirius XM reported revenue of $2.18 billion, slightly below expectations, while its earnings per share of $0.08 met the estimates of analysts. It had 33.25 million subscribers for its radio service and an additional 6.0 million subscribers for the Pandora streaming platform.