UPDATE: FBN Securities Reiterates Outperform Rating, Lowers PT on Pandora Media on Good Execution, Slow User Growth

In a report published Monday, FBN Securities analyst Shebly Seyrafi reiterated an Outperform rating on

, but lowered the price target from $35.00 to $30.00. In the report, FBN Securities noted, “We reiterate our Outperform rating on P and lower our PT from $35 to $30. We are impressed by the company's continued increase in monetization, with mobile ad RPM of $40.82 (up 16% Y/Y) beating the $39.49 consensus, and with total mobile RPM of $44.96 growing well at 14% Y/Y. However, active users were only 76.5M, up 5% Y/Y (down from growth of 25% Y/Y a year ago), and this pressured the stock a bit. Still, engagement and profitability improved. Total listener hours were 4.99B, up 25% Y/Y but slightly below the 5.02B consensus, but listener hour per active user per month was 21.6, up a strong 18% Y/Y. In terms of profitability, GM of 47.5% (up 300 bp Y/Y) exceeded our 46.5% estimate, Adjusted EBITDA $24.4M exceeded the $21.4M consensus, and NG EPS of $.09 beat the $.08 consensus.” Pandora Media closed on Friday at $20.00.