Deutsche Bank Upgrades SiriusXM to Buy on YouTube Deal

Deutsche Bank upgraded SiriusXM Holdings from hold to buy and raised its price target from $31 to $45. The investment bank argues that the market is mispricing the company by disregarding its growth potential for 2027 and 2028.

Analyst Bryan Kraft identified a significant opportunity in digital audio advertising, specifically noting that SiriusXM will serve as the exclusive U.S. audio advertising representative for Alphabet's YouTube. Deutsche Bank estimates this partnership could generate $2 billion in annual incremental revenue by 2029. The bank also cited an expanded partnership with Amazon, established in July, as a key growth driver.

This bullish outlook diverges from the broader Wall Street consensus, where most analysts maintain a hold rating. While Berkshire Hathaway owns a 37% stake in the company, creating some uncertainty about whether share repurchases will push that ownership past 50%, Deutsche Bank stated this is not a primary concern for the investment case.