UPDATE: Goldman Sachs Upgrades Pandora Media to Buy, Raises PT on Monetization, Subs Opportunity

In a report published Friday, Goldman Sachs analyst Heath P. Terry upgraded the rating on

from Neutral to Buy, and raised the price target from $18.00 to $27.00. In the report, Goldman Sachs noted, “We are upgrading Pandora to Buy from Neutral with a $27, 12-month price target, 36% upside from current levels. We are encouraged by three quarters of accelerating mobile ad RPM and subscription revenue growth, and believe competition concerns are at least adequately understood. Our scenario analysis suggests considerable upside to consensus estimates as local advertisers become increasingly comfortable online, Pandora's sales investments show leverage, and integration into radio ad buying platforms drive long-term growth. With P trading at a discount to the group relative to its growth rate, we believe the risk/reward in owning P is favorable.” Pandora Media closed on Thursday at $19.85.