On Tuesday, Rosenblatt made an adjustment to the price target for The Liberty SiriusXM Group (NASDAQ:LSXMK), bringing it down to $29 from the previous $38, while maintaining a Buy rating on the stock. The firm's analyst provided insights following Liberty Sirius's first-quarter 2024 earnings report.
The revised price target is predicated on the successful completion of the anticipated merger with SiriusXM, which is expected to conclude by early third quarter of 2024.
The analyst's evaluation reflects an updated valuation of Liberty Sirius shares post-merger, aligning them with the newly adjusted price target for SiriusXM, which now stands at $3.40 subsequent to the earnings report. The reduction in SiriusXM's price target has consequently led to a lower price target for Liberty Sirius.
The updated estimates for Liberty Sirius take into account the current market conditions and the company's performance as detailed in the recent earnings report. The firm's analyst has calculated the new price target based on the assumption that after the merger, the value of Liberty Sirius shares will mirror the price target set for SiriusXM.
The analyst also noted a slight discount in the valuation of Liberty Sirius shares. According to the firm's analysis, there is approximately a 4% discount in the current market pricing of Liberty Sirius shares compared to their assessment. This remark indicates that the shares are trading at a price slightly lower than what the firm considers their true value based on their projections.
InvestingPro Insights
As investors consider Rosenblatt's revised price target for The Liberty SiriusXM Group (NASDAQ:LSXMK), they may find additional context in real-time metrics and InvestingPro Tips. The market cap of Liberty Sirius stands at $8.25 billion, with a P/E ratio of 9.71, reflecting a market sentiment that values the company's earnings favorably. The P/E ratio adjusted for the last twelve months as of Q1 2024 is even slightly lower at 9.39, suggesting a consistent earnings outlook.
The company's revenue growth shows modest positive movement, with a 0.11% increase over the last twelve months as of Q1 2024, and a more noticeable quarterly revenue growth of 0.84% for Q1 2024. This aligns with the analyst's view that the company's performance is a significant factor in its valuation post-merger.
Two InvestingPro Tips that could be particularly insightful for investors are the company's high shareholder yield and the prediction by analysts that the company will be profitable this year. These points indicate that Liberty Sirius has a strong return on investment and a positive outlook, respectively. Notably, the company does not pay a dividend to shareholders, which may be a consideration for income-focused investors. For those seeking a deeper dive into the company's financial health, there are additional InvestingPro Tips available at https://www.investing.com/pro/LSXMK, and by using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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