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Pandora (P) Price Target Raised to $35 at Goldman

October 3, 2013 8:47 AM EDT 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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Goldman Sachs reiterated a Buy on Pandora (NYSE: P) and raised its price target to $35.00 (from $30.00). Analyst Heath P. Terry noted strength in local advertising.

"The leverage in Pandora’s model lies in its ability to shift advertising from national and remnant to a majority local mix similar to the majority local mix of terrestrial radio. Our earnings power model suggests Pandora could generate in excess of $4 pro forma EPS in FY16 if listener hours grow 20- 25% annually and local advertising reaches 50% of total impressions," said Terry.

"While this is among the best possible scenarios and likely underestimates the time necessary for local advertisers to adapt, we believe the model can be a useful tool to illustrate the potential outcomes from Pandora's investment in a local sales force, advertising technology, and the distribution ecosystem. With this leverage, the increasing shift of local ad dollars online, and the potential for accelerating usage growth, we believe Pandora remains a Buy," he added.

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 $26.89 yesterday.




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