UPDATE: National Alliance Initiates Pandora Media at Market Perform; Balanced Risk/Reward

National Alliance initiated coverage on Pandora Media (NYSE: P) with a Market Perform rating and $7.83 price target.

National Alliance commented, "We're initiating on Pandora Media with a Market Perform rating, and $7.83 price target, with a 1% share price to target return opportunity. The Company's product portfolio offers a pure play on the online web / mobile advertising market, over PC, Tablet, Smartphone and connected platforms. We view the Company's near term share price risk / reward profile balancing neutral, with strong online advertising sales growth more than offset by content acquisition expense and emerging competitive threats, particularly from Apple and Spotify. We would look more favorably on the Company's risk / reward profile under $7 per share."

Pandora Media closed at $7.66 on Tuesday.