Canaccord Genuity analyst Michael Graham weighed in today with a few insights on Pandora Media Inc (NYSE:P), as the company will report second-quarter results after the market close on Thursday, July 23, and host a conference call at 2:00 PM PT. The analyst also reiterated a Buy rating on Pandora Stock with a price target of $26.00, which represents a potential upside of 86% from where the stock is currently trading. Pandora shares are trading down 2.29% at $13.64 as of 11:32 p.m. EDT today.
Graham wrote, “Our analysis of Triton data for the month of May (Triton Digital releases its metrics with a two-month lag) is consistent with our April checks. We believe Pandora may report total listener hours below our estimate of 9.1% growth to 5.50 billion. April and May have so far posted growth rates below our estimate. That said, prime-time listener hours are growing faster, and we believe this could suggest that Pandora is growing its highest RPM and therefore most profitable listener hours fastest. Therefore, we remain comfortable with our revenue and gross margin estimates. After Q2, Pandora essentially has one more quarter to report before the expected CRB decision in December.”
The analyst concluded, “We still believe the most likely scenario will see the company hitting guidance, the stock melting up slightly into year-end on short-covering ahead of CRB, and a more or less status quo CRB decision. While Q2 listener metrics may be bumpy, we believe the stock is attractive at current levels.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Graham has a total average return of 15.4% and a 54.1% success rate. Graham has a 13.1% average return when recommending P, and is ranked #205 out of 3712 analysts.
Out of the 29 analysts polled by TipRanks, 20 rate Pandora Media stock a Buy, 8 rate the stock a Hold and 1 recommends Sell. With a return potential of 67.8%, the stock’s consensus target price stands at $23.44.