Wedbush Securities Reiterates Outperform Rating, $10 PT on Pandora Media

In a report published Wednesday, Wedbush Securities reiterated its Outperform rating and $10.00 price target on Pandora Media P. Wedbush noted, “CEO Joe Kennedy recently testified at the first in a series of congressional hearings on music licensing. We have not modeled meaningful changes to Pandora's cost structure going forward, as we expect Congress to favor musicians' rights, and expect any legislation to address the inequity of free distribution rights for terrestrial radio before addressing the inequity between rates paid by Internet radio distributors and digital radio distributors that pay lower rates than Pandora. Should the rates drop for Internet radio distributors, Pandora would benefit immensely, but the lower rates may attract new entrants to internet radio.” Pandora Media closed on Tuesday at $9.45.