Cooperation with Amazon and YouTube is expected to ignite a new round of growth! Deutsche Bank supports Sirius XM (SIRI.US): the stock price still has room to rise by more than 50%

The Zhitong Finance App learned that Deutsche Bank raised the Sirius XM (SIRI.US) stock rating from “hold” to “buy” and raised the target price to $45, which is one of the highest target prices on Wall Street, which means there is still room for 51% increase from Thursday's closing price. The bank's analyst Bryan Kraft pointed out that Sirius XM's partnership with the two tech giants, which has not been fully taken seriously by the market, may mean that its stock price is expected to continue to rise after a sharp rise this year.

Deutsche Bank analysts believe there is room for a sharp rise in Sirius XM's stock price

Bryan Kraft is becoming Sirius XM, a satellite broadcaster rarely seen in the market. This kind of “enthusiasm” is not common on Wall Street. Of the 14 analysts tracked by the media, only 5 are currently recommending buying the stock; analysts' average target price is around $33, which means 11% room for growth. Sirius XM's stock price has risen nearly 50% since this year, far higher than the 14% increase in the S&P Mid Cap 400 Index.

Bryan Kraft anticipates that as Sirius XM establishes partnerships with Amazon (AMZN.US) and YouTube (GOOGL.US), the company's growth will begin to accelerate. He said, “Currently, the trading price of this stock is quite discounted compared to its intrinsic value, and as the company transforms into a company with a healthy growth rate, we should see a revaluation.”

According to aggregated data, Sirius XM generated approximately $8.6 billion in revenue in 2025. Current market consensus predicts that the company's annual revenue growth rate will be in the low single digits until 2029, when sales are expected to reach US$9.1 billion. However, during this period, the market expects the company's profit to grow at a rate close to or double digits every year, with the profit growth rate expected to reach 30% this year.

Bryan Kraft's core logic of looking at Sirius XM is that the company is becoming YouTube's exclusive audio advertising agency in the US market. He estimates that this partnership could bring Sirius XM an additional $2 billion in incremental revenue each year by 2029, while contributing 350 million to $400 million in EBITDA. “This alone is enough to make Sirius a growing company again,” he said. “You almost need to take a step back to really realize how important this is, because currently it hasn't even been factored into the market's profit expectations.”

Bryan Kraft also believes that the expansion of cooperation between Sirius XM and Amazon's advertising demand-side platform will also be a smooth wind factor driving revenue growth. Advertising revenue from Sirius XM and Pandora and off-site businesses will account for more than 20% of the company's total revenue in 2025.

Currently, the expected price-earnings ratio of Sirius XM's stock price is about 9 times, 50% lower than the average of the past 10 years, and lower than the broader S&P Mid Cap 400 Index. The latter currently has an expected price-earnings ratio of around 16 times. Bryan Kraft added: “Currently, the valuation multiples for this stock reflect a company that is not growing, but as the company begins to realise the opportunities presented by these partnerships, we expect the market to revalue to reflect positive growth prospects.”