Sirius XM Stock: Next Stop, $8?

There's a new bull in sizing up the near-term prospects for Sirius XM Holdings (NASDAQ: SIRI). Wells Fargo analyst Steven Cahall is initiating coverage of the satellite radio giant with a bullish outperform rating this week. He's setting a price target of $8 on the shares, matching the Street high that was originally set by Jessica Reif at Bank of America Merrill Lynch in the springtime of last year. Credit Suisse would follow a month later with a price goal of $8.50, but that analyst has been replaced by the still-bullish Brian Russo at a lower $7 target.

Cahall feels that the model's low churn, steady fixed costs, and average revenue per user -- which inches higher with inflation, given the music licensing fees that are passed on to listeners -- make Sirius XM Holdings a strong yet steady investment. His $8 price target implies 28% of upside from current levels.

Patrick Stewart and Hugh Jackman at a Sirius XM Town Hall session. Image source: Sirius XM Holdings.

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Source Fool.com