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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuSiriusXM Holdings should gain ground, even as analysts on Wall Street have “overlooked” its potential to grow, Deutsche Bank said. The investment bank upgraded the audio entertainment company to buy from hold. It also hiked its price target on shares to $45 from $31, suggesting 63% upside from Tuesday’s close. “We believe SIRI is mispriced based on a large disconnect between consensus estimates and what we believe the company can achieve in 2027 and 2028,” analyst Bryan Kraft said Wednesday in a note to clients. “We see a clear opportunity for multiple expansion and positive estimate revisions, driven by growth in digital audio advertising, which is seemingly being overlooked by the market.” The analyst added that SiriusXM is slated to become the exclusive U.S. audio advertising representative of Alphabet’s YouTube, enabling the video platform to leverage its ad technology and scale in audio advertising. The partnership could drive $2 billion in annual incremental revenue by 2029 at a high-teens EBITDA margin for an EBITDA contribution in the range of $350 million to $400 million, according to Deutsche Bank. That, in turn, should give SiriusXM’s stock a boost, the bank said. “Consensus estimates seem to be completely disregarding that SiriusXM will become YouTube’s exclusive US audio advertising representative,” Kraft wrote. SiriusXM also expanded its partnership with Amazon in July, which may also support share growth, the analyst said. To be sure, Berkshire Hathaway ‘s “creeping ownership interest” presents some uncertainty for the future of the the stock, but that shouldn’t concern investors for now, Kraft said. He noted that Berkshire owns 37% of outstanding shares of SiriusXM, which implies that Berkshire would cross the 50% ownership threshold after only roughly $2.5 billion worth of share repurchases at the current stock price. “Will the Board pivot to special dividends, a larger recurring dividend, or ask Berkshire to sell into the buyback proportionately in order to avoid crossing the 50% threshold,” Kraft wrote. “Time will tell, but we don’t view this as a concern for the investment case.” Deutsche Bank’s call goes against consensus on Wall Street. Of the 16 analysts covering SiriusXM, 8 have a hold rating on the stock, while only four have a buy or strong buy on it, LSEG data shows. Shares have risen 38% year to date.Read More