Bank of America Merrill Lynch Reiterates Buy Rating, $16 PT on Pandora Media

In a report published Friday, Bank of America Merrill Lynch reiterated its Buy rating and $16.00 price target on Pandora Media P. BofA Merrill Lynch noted, “Today, we held an investor meeting with Joe Kennedy, Pandora's Chief Executive Officer, at the Consumer Electronics Show (CES) in Las Vegas, NV. Although there was not a lot of new information, key takeaways included: continued expansion of local sales force with top ten radio ad markets now running at scale and sales mgmt now established in 27 of the top 40 markets, continued diversification of offerings including adding some talk and user controlled news and traffic to complete auto offering, usage continuing to robustly grow despite competition concerns, and no mention about fiscal cliff impact on Q4 advertising. We are maintaining Buy rating and $16 PO is based on a DCF analysis.” Pandora Media closed on Thursday at $10.86.