Sirius XM Holdings Shares Rise on Analyst Upgrade and YouTube Advertising Partnership
Shares of Sirius XM Holdings (NASDAQ: SIRI) surged by as much as 7.9% before settling at a gain of approximately 7.5%. The rally followed an upgrade from Deutsche Bank analyst Bryan Kraft, who raised his price target for the stock to $45 and changed his rating from 'Hold' to 'Buy'. Kraft cited Sirius XM's growing digital advertising opportunity as a key factor in his positive outlook. Notably, Sirius is set to become YouTube’s exclusive partner for audio-focused content advertising later this year under an agreement reached in April. This partnership allows ad buyers using SiriusXM Media — the company's sell-side platform — to purchase ads on YouTube's podcast and other audio-centric inventory. Sirius XM has seen a decline in subscribers post-pandemic, but its digital ad revenue grew by 5.1% last quarter despite flat subscriber growth. The stock currently trades at around $29.70 with an implied market cap of about $9.3 billion and is valued at roughly seven times this year's free cash flow guidance.
Topics: Deutsche Bank upgrade digital advertising partnership Sirius XM