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

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. 

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. 

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