Analyst Michael Pachter from Wedbush reiterated his Outperform rating for Pandora Media Inc (NYSE:P) with a price target of $15, marking a 15.5% increase from current levels.

This rating comes ahead of Pandora’s earnings, for which the analyst is anticipating continued losses and negative free cash flow. He attributes these results, which he expects to see into 2017, to investments in on-demand music and international expansion. Pandora is currently implementing a three-tier offering strategy that includes commercial supported radio, commercial free radio, and on-demand listening. Pachter expects this strategy to give Pandora a leg up on its competitors and “expects investors will embrace the strategy when it shows signs of success later this year.”

According to TipRanks, 48% of Pachter’s recommendations are profitable and come with an average annual loss of 2%.