Guggenheim reiterates Sirius XM stock rating on stable trends

Guggenheim has reaffirmed its Buy rating and $37.00 price target on Sirius XM Radio (NASDAQ:SIRI) based on the company's stable third-quarter earnings. Sirius XM reported $2.153 billion in revenue and $694 million in adjusted EBITDA, which met both Guggenheim's estimates and the consensus estimates of $2.154 billion and $666 million, respectively.

The investment firm believes the company is undervalued, citing a P/E ratio of 11.4 and strong EBITDA performance driven by lower operating costs. Guggenheim's full-year 2026 outlook for Sirius XM remains optimistic, projecting revenue, adjusted EBITDA, and free cash flow to exceed the company's guidance. The Federal Communications Commission (FCC) recently issued a notice of proposed rulemaking involving spectrum and emergent space activities, but Guggenheim expects material revenue from spectrum monetization to be several years away.

The investment firm anticipates Sirius XM to increase share repurchases to $1.0 billion next year, up significantly from the previous years. Sirius XM's strong shareholder yield, with an 11-year streak of dividend payments and a current yield of 3.96%, adds to its appeal. Investors can delve deeper into the company's performance with additional ProTips and Pro Research Reports available for SIRI and over 1,400 other US stocks.