SunTrust's Peck Upgrades Pandora (P) to Buy Ahead of Potential Catalysts
- Top 10 News for 10/24 - 10/28: AT&T (T), Time Warner Make it Official; Margins Hamper Apple's Q4; Mergers Aplenty
- Wall St. falls as FBI to review more Clinton emails
- Clinton email problem resurfaces as FBI announces review
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
SunTrust Robinson Humphrey upgraded Pandora (NYSE: P) from Neutral to Buy with a price target of $18.00, ahead of potential catalysts.
Analyst Robert Peck commented, "We are upgrading Pandora to Buy from Neutral ahead of what we think will be a series of positive catalysts: the impending signing of direct deals with music labels; the announcement of new tiered products; and the ability to beat low guidance set by the company. Our 2017 $18 target implies a ~2.3x fwd revenues and ~14x fwd normalized EBITDA multiple."
The analyst notes three probable scenarios optimize risk/reward: 1) the company signs direct deals with labels and rolls out new interactive products; 2) the company can’t sign economically sound deals and pares back investment and spending to focus on core (no M&A); 3) the company doesn’t sign deals and entertains M&A. Our weighted probabilities (75%, 10%, 15%) and associated implied targets center on a $18 2017 target.
Shares of Pandora closed at $13.62 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Oppenheimer Upgrades Level 3 Communications (LVLT) to Outperform
- Alphabet (GOOGL) (GOOG) 'Buy' Maintained at SunTrust Following Solid Q3
- Alphabet (GOOGL) (GOOG) PT Lifted to $1000 at Oppenheimer
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Upgrades, Upgrades
Related EntitiesSunTrust Robinson Humphrey, Robert Peck
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!