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Barclays Still Sees Pandora (P) Struggling to Profitability; Maintains 'Underweight'

May 24, 2012 3:16 PM EDT Send to a Friend
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Price: $27.04 --0%

Rating Summary:
    23 Buy, 13 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Barclays maintains an 'Underweight' on Pandora (NYSE: P) price target raised $1 to $9.

Analyst, Anthony DiClemente, said, "While results indicate P is gaining traction with advertisers, it continues to lose money as PF net loss grew driven by content acquisition costs, which represented 69% of revenue, up 1200 bps Y/Y. While P's brand and offering are strong, we think profitability will remain a struggle given the continued shift to mobile listening. Our thesis remains intact as P is seeing negative leverage on content acquisition costs and continued softness in mobile pricing."

DiClemente raises FY12 EPS loss from -0.16 to -0.11 and FY13 from -0.10 to -0.02.

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 $10.33 yesterday.




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