Pandora (P) PT Raised to $16 at Needham & Company

Needham & Company analyst Laura Martin reiterated a Buy rating and lifted her price target on Pandora (NYSE: P) to $16 from $13.

Martin commented, "We raise our 12-Month Target Price to $16 (from $12), up approximately 23% from current levels, as we roll forward our target price analysis to be based on FY17 estimates. We maintain 2Q16 estimates at revenue of $351.5mm (up 23% y/y), OIBDA loss of $74.7mm (worse than 2Q15 OIBDA loss of $16.2mm), and Non-GAAP EPS Loss of $0.21 (worse than 2Q15 Non-GAAP EPS of $0.05). We estimate 2Q16 Advertising revenue of $275mm (up 19% y/y), Subscription of $56.5mm (up 3% y/y), and Ticketing Service of $20mm. We retain our BUY rating based on P’s status as a category winner in music, new revenue stream potential from on-demand services, margin expansion upside, a potential sale, and P’s inexpensive valuation."

For an analyst ratings summary and ratings history on Pandora click here. For more ratings news on Pandora click here.

Shares of Pandora closed at $13.04 yesterday.

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