Sirius XM Rises After Deutsche Bank Upgrade
Shares of Sirius XM Holdings (NASDAQ:SIRI) rose by 6% in early trading after Deutsche Bank upgraded the stock to Buy from Hold, setting a $45 price target. The upgrade follows Q2 results that marked the first positive self-pay net additions for Sirius XM in four years and record low monthly churn at 1.4%. Management also raised full-year guidance across revenue, adjusted EBITDA, and free cash flow. In contrast to Sirius XM's strong performance this year—up 43% YTD—Spotify (NYSE:SPOT) is down 6%, while iHeartMedia (NASDAQ:IHRT) has fallen by 35%. The Communication Services Select Sector SPDR ETF remains flat, indicating the rally in SIRI appears to be driven more by specific analyst commentary than a broader sector shift. Deutsche Bank cited Sirius XM's strategy reset and financial improvements as key factors behind its upgrade. With subscriptions making up 76% of revenue and reaching over 255 million monthly listeners across platforms, the firm sees potential for continued momentum in SIRI.
