Pandora (P): LT Planning Causes NT Deceleration, Do You Have Faith? - Nomura
- Major stock indexes rise again to new records
- Unusual 11 Mid-Day Movers 12/8: (COOL) (TLRD) (DRAM) Higher; (SHIP) (OHRP) (MLSS) Lower
- Third-Party Said Interested in PrivateBancorp (PVTB) as CIBC (CM) Deal is Delayed
- Insys Therapeutics (INSY) Sinks as Former Employees Arrested in Racketeering Scheme
- Lower for longer, ECB scales back asset buys
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Oppenheimer Upgrades Pandora (P) to Outperform
- Stifel Reiterates Buy on Selecta Biosciences (SELB) Following Phase l Data Release
- Stifel Reiterates Buy on Casella Waste Systems (CWST) - PT to $16
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!