Market Overview

Strategic Alternative Review Not Enough To Push Nomura Bullish On Pandora

Share:
Strategic Alternative Review Not Enough To Push Nomura Bullish On Pandora

Pandora Media Inc (NYSE: P) shares are falling after missing first-quarter estimates after the close on Monday, however, the bigger news was surrounding a $150 million investment in the company by KKR.

Some believe the investment is part of a move to make the company more attractive for a potential sale. Pandora’s struggles are notable giving the intense competition the streaming music space has seen over the past couple of years.

Staying Sidelined

According to a report from CNBC, the company is actively trying to sell itself and believes it can get the deal done within 30 days.

“Given the fact that Pandora’s business remains in a state of transition, the stock is near a point where the importance of near-term core operating results [is] being obfuscated by 1) the shift to a new subscription business model, where subscribers are growing 20%/year, albeit off a small base; and 2) the addition of new investors and active board members, intended at least in part to explore the company’s strategic alternatives,” said Nomura analysts.

The firm noted Pandora’s first-quarter results were disappointing as the company lowered its second-quarter and full-year revenue guidance. As a result, Nomura lowered its price target on the company to $12 from $14. The firm maintains a Neutral rating on Pandora.

At last check, shares of Pandora were down 3.8 percent at $10.01.

Related Links:

Pandora Pays A Premium For What It Hopes Will Be The Right Strategic Investor

Pandora Pounded After Q1 Miss And Lower Guidance

Latest Ratings for P

DateFirmActionFromTo
Nov 2018DowngradesBuyHold
Oct 2018DowngradesBuyNeutral
Oct 2018DowngradesOutperformMarket Perform

View More Analyst Ratings for P
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings M&A News Contracts Reiteration Analyst Ratings Movers Best of Benzinga

 

Related Articles (P)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Catalysts Growing Like Weeds For Zynerba Next Quarter

Detroit Entrepreneur Launches Superinfused Beverages As A Healthy Soft Drink Alternative