Deutsche Bank has upgraded Sirius XM stock to a "Buy" rating from "Hold", lifting its price target to $45, one of the highest on Wall Street. This new target implies a 51% upside from Thursday's closing price.

Analyst Bryan Kraft points to the satellite radio company's partnerships with two tech giants as being insufficiently valued by the market, suggesting the shares could continue their strong run following this year's substantial gains.

Kraft is emerging as a rare bull on Sirius XM, a sentiment not commonly seen on Wall Street. Of the 14 analysts tracked by media, only five currently recommend buying the stock. The average analyst price target is around $33, implying 11% upside.

Sirius XM shares have surged nearly 50% year-to-date, far outpacing the S&P Midcap 400 index's 14% gain.

Kraft anticipates growth will accelerate as partnerships with Amazon and Google's YouTube begin to materialize. He states that the stock is trading at a considerable discount to its intrinsic value, and as the company transforms into an entity with a healthy growth rate, the market should see a valuation re-rating.

Based on compiled data, Sirius XM generated approximately $8.6 billion in revenue in 2025. While the consensus forecast sees low single-digit annual revenue growth through 2029, when sales are expected to reach $9.1 billion, earnings are projected to grow at a near-double-digit or double-digit pace annually during that period, with this year's profit growth estimated at 30%.

The core of Kraft’s bullish thesis rests on Sirius XM becoming YouTube's exclusive audio advertising agent in the U.S. He estimates this partnership could generate an additional $2 billion in annual incremental revenue for Sirius XM by 2029, along with $350 million to $400 million in EBITDA. He believes this alone is sufficient to re-establish Sirius XM as a growth company, adding that one almost needs to step back to truly grasp the magnitude of this opportunity, as it is not yet factored into market earnings expectations.

Kraft also views the expanded partnership with Amazon's advertising demand-side platform as a tailwind for revenue growth. Advertising revenue from Sirius XM, Pandora, and off-platform businesses accounted for more than 20% of the company's total revenue in 2025.

Currently, Sirius XM trades at a forward price-to-earnings ratio of about 9 times, which is 50% below its 10-year average and also lower than the broader S&P Midcap 400 index, which trades at a forward P/E of roughly 16 times.

Kraft concludes that while the stock's current valuation multiple reflects a company with no growth, as the opportunities from these partnerships begin to be realized, the market is expected to re-rate the shares to reflect a positive growth outlook.