Wells Fargo Maintains an 'Outperform' on Pandora (P); Mobile Audience Ahead Of Monetization; Revising Estimates

March 7, 2012 9:31 AM EST
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Price: $12.76 --0%

Rating Summary:
    21 Buy, 22 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 9 | New: 3
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Wells Fargo maintains an 'Outperform' on Pandora (NYSE: P) price target range lowered from $21-23 from $15-18.

Wells analyst says, "Pandora's shares are trading down nearly 20% after hours given the weakerthan-expected Q4 revenue and lower-than-expected FY2013 profit outlook. The transition from desktop to mobile is going well, perhaps too well, as monetization is lagging the huge growth in listener hours and CAC. Mobile listening accounts for over 70% of total hours, and unfortunately still has low CPM's relative to the desktop web. While this quarter's results were a bit light, we think there is great progress on the model despite a number of new
competitors and alternative online music options."

"We are lowering our EPS estimates for FY2013 as the company continues to invest in distribution. We now project FY2013 revenue of $410MM and EPS loss of $0.16, from $405MM and EPS loss of $0.01 previously."

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 $14.27 yesterday.

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