Pandora (P): LT Planning Causes NT Deceleration, Do You Have Faith? - Nomura
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Nomura Securities analyst, Anthony DiClemente, reiterated his Neutral rating on shares of Pandora (NYSE: P) after attending Pandora's analyst day and analyzing the company's 3Q results. Q4 guidance for 4Q suggests further revenue deceleration on continued demand weakness and EBITDA well below expectations due to higher content costs and product launch investments.
During the analyst day, management reiterated ambitious 2020 growth targets and detailed subscription initiatives. The opportunity in subscription music is large but fierce competition from the likes of Spotify, Apple, Amazon, and YouTube requires Pandora to prove out success for its upcoming $10/month product before the street will grow more optimistic, especially given uninspiring near-term trends for the core ad-supported business.
No change to the price target of $14.
Shares of Pandora closed at $12.18 yesterday.
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