Sirius XM rises on reports Deutsche Bank turns bullish
SIRI•Recent results and stock performance
SIRI in July posted a second-quarter profit miss, as higher memory chip costs hit equipment revenue, and monthly active users at its Pandora unit fell 7% from a year earlier.
The average rating of 16 brokerages covering the stock is hold; the median price target is $31, according to LSEG data.
Through Tuesday, the stock was up 38% year to date, well outperforming the Nasdaq's .IXIC 12% advance.
Berkshire Hathaway BRKa.N is the largest SIRI shareholder with about a 37% stake.
Shares rise after Deutsche Bank upgrade
Sirius XM's SIRI.O shares were up 5.4% to $29.11 before the bell on Wednesday after news that Deutsche Bank upgraded the audio entertainment company to buy from hold.
The brokerage also boosted its price target from $31 to $45, implying 63% upside to the stock's last close.
Bullish view on longer-term earnings and ad potential
Deutsche Bank said the stock is mispriced because consensus estimates do not reflect what SIRI can achieve in 2027 and 2028, thefly.com reported.
The brokerage contended that the Street seems to be disregarding that SIRI will become the exclusive U.S. audio advertising representative of Alphabet's GOOGL.O YouTube, according to the report.
