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JPMorgan Turns Bullish On Sirius XM As Pandora Deal Nears Completion

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JPMorgan Turns Bullish On Sirius XM As Pandora Deal Nears Completion

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

DateFirmActionFromTo
Oct 2019Initiates Coverage OnHold
Sep 2019Initiates Coverage OnOutperform
Jun 2019UpgradesNeutralOutperform

View More Analyst Ratings for SIRI
View the Latest Analyst Ratings

Posted-In: JPMorgan Sebastiano PettiAnalyst Color M&A News Upgrades Price Target Analyst Ratings Best of Benzinga

 

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