Needham & Company Maintains a 'Buy' on Pandora (P) Even with Strong Q2; Raising Estimates
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Price: $118.16 +0.69%
Rating Summary:
10 Buy, 24 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
10 Buy, 24 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Pandora (NYSE: P) price target of $13.00.
Analyst, Laura Martin, still suggests buying shares of Pandora, despite the run-un on strong Q2 earnings.
Some of her highlighted points include: 1) One of the economic benefits of the Internet is its global reach. Pandora can roll out its service to new geographies with minimal incremental costs; 2) Although P is hiring salespeople, which is hurting margins in FY13, they also have beta-test reseller arrangements. In these 5 markets the local newspaper or TV station sells Pandora ad time for a cut of the revenue; 3) Mobile revenue growth was 86% y/y and total listening hours grew 80% y/y, implying that monetization has essentially caught up with listener growth; and 4) 48 car and truck models haven announced that they will build P into their dashboards. P’s cost per net add is zero for these new listeners. Not all mobile minutes are created equally: Cars are better than phones.
FY13 EPS estimate raised from (0.10) to (0.06). Revenues from $423.1M to $426.4M
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 $10.08 yesterday.
Analyst, Laura Martin, still suggests buying shares of Pandora, despite the run-un on strong Q2 earnings.
Some of her highlighted points include: 1) One of the economic benefits of the Internet is its global reach. Pandora can roll out its service to new geographies with minimal incremental costs; 2) Although P is hiring salespeople, which is hurting margins in FY13, they also have beta-test reseller arrangements. In these 5 markets the local newspaper or TV station sells Pandora ad time for a cut of the revenue; 3) Mobile revenue growth was 86% y/y and total listening hours grew 80% y/y, implying that monetization has essentially caught up with listener growth; and 4) 48 car and truck models haven announced that they will build P into their dashboards. P’s cost per net add is zero for these new listeners. Not all mobile minutes are created equally: Cars are better than phones.
FY13 EPS estimate raised from (0.10) to (0.06). Revenues from $423.1M to $426.4M
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 $10.08 yesterday.
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