UPDATE: Stifel Nicolaus Cuts PT to $14 on Pandora Media on Lower Guidance for January Quarter

Stifel Nicolaus reiterated its Buy rating on Pandora Media (NYSE: P) but reduced its price target from $17 to $14. Stifel Nicolaus said, "Strong results were over-shadowed by 6.5% ($8.5mn mid-pt) reduction in January quarterly outlook -- citing the impact of fiscal cliff on ad budgets. We believe investors will look through this exogenous variable, focusing instead on the continued progress in mobile monetization. Content costs as a percent of revenue declined for the second consecutive quarter to 55%. Pandora reported 3.56bn hours streamed during the quarter, and now represents ~7% of total radio listening hours. All else being equal, we would add to positions on weakness as we believe growth will recover after Fiscal Cliff issues are resolved. Target reduced but still material upside potential from current levels. Pandora is the first company to discuss part of 2013, the fiscal cliff and impact on ad spending intentions."Pandora Media closed at $9.45 on Tuesday.