Analyst Note| Neil Macker, CFA |
SiriusXM ended 2020 on a high note despite continued shutdowns across the U.S. as revenue and EBITDA exceeded FactSet consensus expectations. The company added 407,000 self-pay SiriusXM customers in the quarter, taking the total over the last nine months to an impressive 840,000 given the drop in commuting and travel. The strong net adds along with improvement in churn despite the shutdown demonstrates the underlying strength of and demand for SiriusXM content, which bodes well for the service even as its streaming competitors gain more traction in and out of cars. We are maintaining our narrow moat rating and plan to modestly raise our $5.90 fair value estimate.