Pandora Shares Rally as Needham Getting More Bullish, Raises Target to $25
Shares of Pandora Media (NYSE: P) are up more than 5 percent Monday afternoon following some positive comments and a raised price target from Needham's Laura Martin earlier.
Martin boosted her price target on Pandora shares from $20 to $25. The analyst reiterated a Buy rating.
Martin said she expects a "rapid" pace of margin expansion for Pandora's core streaming business. She highlighted possible growth stemming from the integration into cars and within the local radio ad market.
The Needham analyst's raised price target was based on a new valuation model which accounts for the firm's FY15 estimates.
With shares of Pandora last trading around $21.50, Martin's new price target implies potential upside of about 16 percent.
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