Is Sirius XM Stock a Stay-at-Home Winner?
One of the more interesting analyst observations following last week's blowout earnings report by Sirius XM Holdings (NASDAQ: SIRI) came from Bryan Kraft at Deutsche Bank. In sticking to his bullish buy rating on the shares -- and bumping his price target from $7.50 to $7.75 -- he also called the satellite radio operator a surprising beneficiary of the stay-at-home movement.
Sirius XM has historically been an away-from-home winner. Its lifeblood is the flow of car buyers, as satellite radio is typically consumed from vehicles. The platform is the most valuable to commuters who can appreciate paying a premium for higher quality content than terrestrial radio or having to fidget with their smartphone apps through connected cars. Sirius XM's own marketing efforts consist largely of wooing folks purchasing new or used cars, and satellite radio receivers are now factory installed in 78% of the cars hitting the road. However, Sirius XM's resiliency in its latest quarter does lead one to wonder if the company has finally succeeded in thinking outside of the car box.
Image source: Sirius XM Holdings.
Source Fool.com
