Arbitron (ARB) Deal A Win for Pandora (P)

December 18, 2012 2:40 PM EST
Get Alerts P Hot Sheet
Price: $12.70 -0.39%

Rating Summary:
    21 Buy, 22 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 20 | New: 54
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Shares of Pandora (NYSE: P) climbed on news rating agency Nielsen (NYSE: NLSN) acquired radio ratings company, Arbitron Inc. (NYSE: ARB). At $1.26 billion, the deal included a 26 percent takeover premium.

Commenting on developments, analyst Rich Tullo of Albert Fried & Company said, "We think Pandora shares are up about 5% in sympathy with the ARB deal and we still encourage investors to add to positions as the positive industry fundamentals possible under an improved monetization ecosystem could be impressive."

Tullo thinks Pandora is in an excellent position to profit from increased monetization of IP radio, which now accounts for just 1 percent of ad market share in a $1.3 trillion industry. However, Tullo says ad volume could grow as large media buying agencies adopt Nielsen's integrated ad platform, which he expects to roll-out by 2014.

Albert Fried & Company has an Overweight rating on Pandora with a $13 price target.

For an analyst ratings summary and ratings history on Pandora (NYSE: P) click here. For more ratings news on Pandora click here.

Shares of Pandora closed at $8.78 yesterday.

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