UPDATE: Nomura Initiates Coverage on Pandora Media at Neutral, Establishes $35.00 PT

In a report published Wednesday, Nomura analyst Anthony DiClemente initiated coverage on Pandora Media, Inc. P with a Neutral rating, establishing a $35.00 price target. According to the report, it is believed that P listenership will ramp steadily in 2014, even despite recent concerns about competitive entrants. “In addition, mobile monetization should also improve for several reasons, driving revenue per user much higher in 2014,” the report noted. “That said, on the cost side, we are more cautious on music content cost trends, which are variable based on listenership, rendering Pandora's profit margins the lowest in the group. This could change in the coming years, but the outcome of Pandora's arbitration process is very much an unknown. On balance, owing in part to valuation, we await a better entry point.” P closed Tuesday at $34.13.