Deutsche Bank Upgrades SiriusXM To Buy, Sees 63% Upside

According to CNBC, Deutsche Bank upgraded SiriusXM Holdings to buy from hold and raised its price target to $45 from $31, implying 63% upside from Tuesday's close. Analyst Bryan Kraft said the stock is mispriced because consensus estimates do not reflect what the company can achieve in 2027 and 2028, and he said growth in digital audio advertising is being overlooked. Deutsche Bank said SiriusXM is set to become the exclusive U.S. audio advertising representative of Alphabet's YouTube, a partnership it estimates could generate $2 billion in annual incremental revenue by 2029 at a high-teens EBITDA margin, or $350 million to $400 million in EBITDA contribution. Kraft also said SiriusXM expanded its partnership with Amazon in July and noted that Berkshire Hathaway owns 37% of SiriusXM's outstanding shares. Shares of SiriusXM have risen 38% year to date.