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Needham & Company Out In Defense on Pandora (P); Q4 Review: Buy on Weakness

March 7, 2012 7:43 AM EST Send to a Friend
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Price: $27.02 --0%

Rating Summary:
    21 Buy, 15 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Needham & Company maintains a 'Buy' on Pandora (NYSE: P) price target of $13.00.

Analyst, Laura Martin, said, "We would use today’s price weakness as a buying opportunity based on the following analytical building blocks: 1. Pricing Momentum. P’s revenue growth is under pressure because the pricing on mobile is 1/3 that of desktop and mobile listening is increasing at a high rate...2. Cars. 16 car models have agreed to build P into their dashboards...3. Valuation Multiple. US GDP growth of 1-2% means growth is hard to find and therefore rare and valuable...4. Competitor Irrelevance. Even in the face of rising competition and substantial publicity surrounding Spodify and I heart Radio, P’s total listening hours and active users over-delivered estimates in 4Q, growing 108% and 62%, respectively."

Martin cuts FY13 EPS loss from $0.01 to $0.11, but raises revenues from $415.9 mln to $419.2 mln.

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 $14.27 yesterday.




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