Pandora Upgraded To Buy At B. Riley & Co. Amid Wall Street's Low Expectations
B. Riley & Co.'s Sameet Sinha upgraded Pandora Media Inc (NYSE: P) from Neutral to Buy, while raising the price target to $15.00 from $10.00.
"Expanding margins, favorable new Product economies should drive upside" do not reflect Pandora's low price, said Sinha. Pandora traded at 1.4x 2017 revenue and comparable rivals trade at 3.0x, which clearly indicated expectations pulling back, according to the analyst.
In addition, Sinha sees growing pricing power at +40 percent year-over-year, accelerating from +15 percent year-over-year in 1Q15, providing "more headroom for growth."
'Our $15.00 Conservative Price Target'
finally, although Sinha does not base his investment thesis on a takeout expectation, the analyst believes Pandora is an attractive property with scale, data, engagement and a highly targetable audience. Furthermore, "a takeout should be at or above our conservative $15.00 price target."
Latest Ratings for P
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Nov 2018 | Canaccord Genuity | Downgrades | Buy | Hold |
| Oct 2018 | Goldman Sachs | Downgrades | Buy | Neutral |
| Oct 2018 | BMO Capital | Downgrades | Outperform | Market Perform |
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: B. Riley & Co. Sameet SinhaAnalyst Color Long Ideas Upgrades Price Target Analyst Ratings Trading Ideas
