Pandora Media Inc (NYSE:P), the world’s most powerful music discovery platform, and Downtown Music Publishing, the leading music rights management company for the digital age, today announced a multi-year licensing agreement for Downtown Music Publishing’s catalog of musical works. This direct publishing deal creates business benefits for Pandora, while modernizing compensation for Downtown Music Publishing and its songwriters in the U.S.
“This agreement with Pandora is a milestone in our ongoing mission to deliver equitable, accurate and timely payments for our songwriters,” said Justin Kalifowitz, founder and chief executive officer, Downtown Music Publishing. “It also serves as a reminder that songwriter royalties are best negotiated in a free market. We’re looking forward to working more closely with Pandora in optimizing this agreement and know that, in the words of Cy Coleman, ‘the best is yet to come.’”
“I am excited for our partnership with Downtown,” said Brian McAndrews, chief executive officer, Pandora. “Pandora is committed to bringing long-term growth to the music business, and working with the talented and diverse songwriters on Downtown’s roster will contribute to that.”
While specific terms of the multi-year agreement are confidential, the companies worked together to build an innovative approach to publisher economics. The deal allowsDowntown Music Publishing to obtain its goal of delivering improved performance royalties for its songwriters, while Pandora will benefit from greater rate certainty and the ability to add new flexibility to the company’s product offering over time. The public performance royalties Pandora also pays to rights holders of master recordings are not affected by this agreement. (Original Source)
Shares of Pandora Media Inc closed last Friday at $14.12, down $1.14 or -7.47%. P has a 1-year high of $22.60 and a 1-year low of $11.38. The stock’s 50-day moving average is $13.07 and its 200-day moving average is $16.44.
On the ratings front, Pandora has been the subject of a number of recent research reports. In a report issued on December 17, Axiom analyst Victor Anthony reiterated a Hold rating on P, with a price target of $17, which represents a potential upside of 20.4% from where the stock is currently trading. Separately, on the same day, Nomura’s Anthony Diclemente reiterated a Hold rating on the stock and has a price target of $17.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Victor Anthony and Anthony Diclemente have a total average return of 14.1% and 9.1% respectively. Anthony has a success rate of 61.0% and is ranked #61 out of 3633 analysts, while Diclemente has a success rate of 60.2% and is ranked #261.
Overall, 11 research analysts have assigned a Hold rating and 12 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $20.21 which is 43.1% above where the stock closed last Friday.
Pandora Media Inc provides internet radio services on smartphones, tablets, traditional computers and car audio systems, as well as other internet-connected devices.