Market Overview

Wall Street Is Pulling Back, But This Analyst Believes In Pandora's Story

Share:
Wall Street Is Pulling Back, But This Analyst Believes In Pandora's Story
Related P
Could SiriusXM Still Buy Pandora?
Benzinga's Top Upgrades, Downgrades For November 16, 2017

Shares of Pandora Media Inc (NYSE: P) lost around one-quarter of their value Friday in reaction after the streaming service reported third-quarter EPS and sales misses.

Not all of Wall Street wants to change the station. Count Canaccord Genuity's Michael Graham among them: He maintained a Buy on Pandora's stock with a price target lowered from $14 to $11 in a Thursday note. 

The streaming music company's Q3 could be viewed as a "transition," as most of the reported metrics were in line with expectations, but several advertising-related numbers were disappointing, Graham said. (See Graham's track record here.) 

The ad-supported listener base realized a worse-than-expected decline in users, and total advertising revenue fell short of the consensus estimate by 5 percent, according to Canaccord. 

At the same time Pandora offered a vision for its future, including multiple investments and initiatives that should "get these numbers moving in the right direction," Graham said. Pandora detailed two categories of investments: growing the listener base through non-music content like podcasts and improving the ad tech stack by making transactions more flexible to advertisers through programmatic and self-serve channels.

Pandora's transition will take time before signs of success are visible, but in the meantime investors should continue to recognize the "value" of its "large, engaged listener base," Graham said. 

Related Links:

Can Pandora's New Management Team Change Analysts' Tune?

5 Biggest Price Target Changes For Friday

Latest Ratings for P

DateFirmActionFromTo
Dec 2017Evercore ISI GroupInitiates Coverage OnIn-Line
Nov 2017BMO CapitalUpgradesMarket PerformOutperform
Nov 2017JP MorganDowngradesOverweightNeutral

View More Analyst Ratings for P
View the Latest Analyst Ratings

Posted-In: advertising Canaccord Genuity Michael Graham PandoraAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (P)

View Comments and Join the Discussion!

Partner Center