Canaccord Maintains Buy On Pandora Media, Keeps $43 Price Target


In a research report issued yesterday, Canaccord analyst Michael Graham maintained a Buy rating on Pandora Media (P) and a price target of $43.00 a share, representing a potential upside of 49% from where the stock is currently trading.

“The audio ad load in our sample ticked down slightly in June; essentially the core of our sample is confronting Pandora’s max ad load of 6.0 spots per hour. In addition, hours growth of ~29% in April and May was above our 25% Q2 estimate, contributing to the lighter ad load. We believe RPM expansion in Q2 (we model ~25% q/q) is achievable, but will need some help from seasonally stronger display mix (one of the factors in last Q2’s 59% q/q RPM expansion) and audio pricing. We are comfortable with our estimates for Q2 and believe Q3 & Q4 should see tailwinds from local sales reps ramping faster and political ad spending”, Graham wrote.

According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Michael Graham currently has an average return of 26% and a 68% success rate. Graham has a 40.6% average profit recommending P, and he is ranked #43 out of 3133 analysts.

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