Pandora (P) Upgraded Amid the Carnage

Macquarie analyst Amy Yong went out on a limb defending Pandora by upgrading the stock to Outperform and citing "the bear/bull case is now too asymmetrical to ignore". The gap between her price target of $19 and the current share price of $12.39 represents 53% upside.

The upgrade is predicated on 3 things:

1) The Apple blitz will not result in long term share gains and the increased marketing spend by other players such as Spotify is short term in nature.

2) New products like Listener Love Day and One Day Pass offer incremental opportunity. Yong believes One Day Pass could add $1 per share to fair value.

3) Active listener hours will be more than offset by RPM growth.

4) Higher-than-expected royalty costs are now well digested.

The firm maintained an Outperform rating and price target of $19.00

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 $12.39 yesterday.

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