Buzz: Sirius XM jumps as Deutsche Bank turns bullish on ad growth outlook
SIRI•Recent results and stock performance
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Sirius XM in July posted a Q2 profit miss, as higher memory chip costs hit equipment revenue, and monthly active users at its Pandora unit fell 7% from a year earlier.
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The average rating of 16 brokerages covering the stock is hold; the median price target is $31, according to LSEG data.
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With the move in the session, Sirius XM's stock was up 47% year to date, well outperforming the Nasdaq's .IXIC nearly 13% advance.
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Berkshire Hathaway BRKa.N is the largest Sirius XM shareholder with about a 37% stake.
Deutsche Bank upgrades Sirius XM on ad growth outlook
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Sirius XM's SIRI.O shares were up 6.5% to $29.41 in early Wednesday trading after Deutsche Bank upgraded the stock to buy from hold.
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The brokerage boosted its price target from $31 to $45, implying 63% upside to the stock's last close.
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Deutsche Bank analyst Bryan Kraft said in a note the stock is "mispriced" based on a "large disconnect" between consensus estimates and what the company can achieve in 2027 and 2028.
