Music streaming company Pandora Media Inc (NYSE:P) can be credited for creating the music streaming market that everyone knows and loves today when it launched in 2004. Ever since, the company has faced new competition from the likes of Spotify and Apple Music.

Pandora took a tumble after Apple Music launched at the end of June, falling as low as $13.81 in mid-July, but has since rebounded over 26%, last closing at $17.46. According to analysis from Triton data, listening hours on Pandora on July were not as strong as other months.

Canaccord Genuity analyst Michael Graham weighed in on Pandora on September 1 with a Buy rating and $26 price target. While the analyst points out that the amount listening hours on Pandora disappointed in July, growing only 5% year-over-year, it “followed a stronger-than-expected June,” which grew 7.7% tear-over-year. Graham notes that “historically July is the softest month in Q3. If August and September are stronger, there is still a good chance Pandora can post numbers in-line with our conservative 7.7% estimate.”

Furthermore, Graham believes “Pandora is being more selective in the area of proactively seeking engagement from high-RPM listeners.” As such, “This explains the strong ad revenue in Q2 despite weaker listener growth, and should help gross margin continue to expand.” Overall, Graham believes “the ad revenue outlook is bright, with a more productive local audio sales force and programmatic display kicking in later this year.”

Michael Graham has an overall success rate of 50% recommending stocks and a +7.1% average return per recommendation when measured over a one-year horizon and no benchmark. He has rated Pandora 31 times since 2012, earning a 52% success rate recommending the stock and a +20.1% average return per recommendation.

Out of 14 analysts polled by TipRanks within the past three months, 11 analysts are bullish on Pandora and 3 are neutral. The average 12-month price target on the company is $23.25, marking a 33.24% potential upside from where shares reside as of this writing.