Guggenheim analysts started covering Sirius XM Radio (NASDAQ:SIRI) with a Neutral rating and set the price target at $4.00.

The analysts highlighted SiriusXM's position as a leading audio platform characterized by its stable satellite subscription revenue base. The analysts anticipate the company to persist in generating steady free cash flow while maintaining a net leverage ratio in the low-to-mid 3x range, alongside returning excess cash to its shareholders.

The forthcoming transaction with Liberty, expected to finalize in early Q3, is seen as a move to streamline the ownership structure and enhance strategic flexibility. Guggenheim's projections include a free cash flow per share of $0.35 for the current year, increasing to $0.42 by 2025, translating to free cash flow yields of 8.7% and 10.3%, respectively, which they view as attractive.