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Sirius XM Holdings Inc. (SIRI - Get Report) rose 1.4% to $5.79 on Wednesday after JPMorgan Chase & Co. raised its rating of the satellite radio company to overweight from underweight.

JPMorgan also lifted its stock price target to $7. In September, Sirius announced that it had reached a deal to acquire online streaming service Pandora Media Inc. (P for $3.5 billion.

JPMorgan said the company's valuation was attractive at current earnings multiples after a recent stock selloff, ahead of initial 2019 guidance expected this month and ahead of the close of the Pandora deal, which is expected to occur early this year. The transaction has been unanimously approved by both the board of directors of SiriusXM and the independent directors of Pandora.

"We look for SIRI's strong results year-to-date to persist in 4Q18 and 2019 and believe the Pandora acquisition can augment growth in new and existing segments," JPMorgan analysts wrote in a note to clients.

Sirius posted its last quarterly earnings report on Oct. 24. The company reported earnings of 7 cents a share for the quarter, beating Wall Street's expectations of 6 cents. The company posted revenue of $1.47 billion during the quarter, compared with analysts' expectations of $1.46 billion.