Sirius XM jumps as Deutsche Bank turns bullish on ad growth outlook

Berkshire Hathaway

02/09/2026 15:29

Updates
** Sirius XM's SIRI.O shares up 6.5% to $29.41 in early Weds trading after Deutsche Bank upgrades to 'buy' from 'hold'
** Brokerage boosts PT from $31 to $45, implying 63% upside to stock's last close
** Deutsche Bank analyst Bryan Kraft says in a note the stock is "mispriced" based on a "large disconnect" between consensus estimates and what co can achieve in 2027 and 2028
** Wall Street seems to be "completely disregarding" that SIRI will become exclusive U.S. audio advertising representative of Alphabet's GOOGL.O YouTube, a partnership that could drive $2 bln in annual incremental revenue by 2029 at a high-teens EBITDA margin, Kraft says
** He also expects the expansion of the Amazon AMZN.O DSP relationship in July to provide additional tailwinds to advertising revenue growth
** SIRI in July posted Q2 profit miss, as higher memory chip costs hit equipment revenue, and while monthly active users at its Pandora unit fell 7% from a year earlier
** Avg rating of 16 brokerages covering the stock is "hold"; median PT $31, per LSEG data
** With the move on the session, SIRI's stock up 47% YTD, well outperforming Nasdaq's .IXIC nearly 13% advance
** Berkshire Hathaway BRKa.N is the largest SIRI shareholder with about 37% stake

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))