In a research report sent to investors today, FBR analyst Barton Crockett reiterated an Outperform rating on shares of Pandora Media Inc (NYSE:P), with a price target of $16, after the online radio giant reported its second-quarter results and announced its third-quarter guidance, which fell short of expectations.

Crockett wrote, “2Q16 was mixed. A positive was Pandora’s confidence about launching a differentiated, appealing on-demand service by year end (which our checks support), and reports of merger interest (the WSJ midday wrote of a “fishing expedition” from Liberty at $15 per share, citing unnamed sources). Pandora shares are trading down 7% after hours because 15% ad growth failed to hit expectations for 20%, while the full year revenue outlook was reduced $25 million (2%) on a base of $1.4 billion. But it was encouraging that Pandora was able to fully offset the revenue shortfall with spending controls, rebutting fears that this team will spend Pandora into oblivion. We continue to see takeover potential limiting downside and offering upside, which could also come if the upcoming on-demand service impresses.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Barton Crockett has a yearly average return of 7.9% and a 60.4% success rate. Crockett has a 6.2% average return when recommending P, and is ranked #290 out of 4075 analysts.

Out of the 35 analysts polled by TipRanks, 19 rate Pandora Media Inc stock a Buy, 15 rate the stock a Hold and 1 recommends Sell. With a return potential of 41.4%, the stock’s consensus target price stands at $17.28.