Sirius XM Radio Inc. (NASDAQ: SIRI)
should see stronger growth from its acquisition of Pandora, according to a newly bullish JPMorgan.
The Analyst
Analyst Sebastiano Petti upgraded Sirius XM from Underweight
to Overweight and raised the price target from $6 to $7.
The Thesis
Pandora Media Inc. (NYSE: P) shareholders
are set to vote on the Sirius deal at the end of the month.
Pandora gives Sirius more opportunities for growth in streaming, ad-supported radio services and more chances to deliver music
into cars, Petti said in the Wednesday upgrade note.
Sirius didn’t see as much of a drop off in subscriber growth than was expected after an increase in music royalty fees, the
analyst said.
“We believe Sirius XM’s legacy business will continue to execute well in the near-term and that the pending Pandora acquisition
will position it well over the long run as it expands out of the car,” he said.
Price Action
Sirius XM shares were trading up by 2.63 percent at $5.86 at the time of publication Wednesday.
Related Links:
Sirius
Was Likely Impressed With Pandora's Near-Term Execution, Analyst Says After Acquisition Announcement
Barrington
Explains Why A Neutral Stance On Sirius XM Was Wrong
Photo courtesy of Sirius XM.
Latest Ratings for SIRI
| Date |
Firm |
Action |
From |
To |
| Jan 2019 |
JP Morgan |
Upgrades |
Underweight |
Overweight |
| Sep 2018 |
Credit Suisse |
Downgrades |
Outperform |
Neutral |
| Aug 2018 |
Morgan Stanley |
Maintains |
Underweight |
Underweight |
View More Analyst Ratings for
SIRI
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