Nomura Securities Starts Pandora (P) at Reduce, In Structurally Weak Business
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Price: $118.16 +0.69%
Rating Summary:
10 Buy, 24 Hold, 3 Sell
Rating Trend:
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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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Nomura Securities initiates coverage on Pandora (NYSE: P) with a Reduce rating and downside $8.50 price target.
While Pandora is the king of Internet radio, "online radio is a structurally weak industry with low barriers to entry. New competitors continue to emerge, and deep-pocketed technology companies pose significant threats," says analyst Brian Nowark.
"Even if P "wins" the battle to capture more users, we think the Street is overestimating its ability to draw local radio ad dollars and to improve monetization," he continues.
He sees FY14E / 15E revenue $625M / $838M vs Street at $617M / $875M, respectively. FY14E / 15E EBITDA $22M / $49M beneath Street at $25M / $53M, respectively.
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 $10.89 yesterday.
While Pandora is the king of Internet radio, "online radio is a structurally weak industry with low barriers to entry. New competitors continue to emerge, and deep-pocketed technology companies pose significant threats," says analyst Brian Nowark.
"Even if P "wins" the battle to capture more users, we think the Street is overestimating its ability to draw local radio ad dollars and to improve monetization," he continues.
He sees FY14E / 15E revenue $625M / $838M vs Street at $617M / $875M, respectively. FY14E / 15E EBITDA $22M / $49M beneath Street at $25M / $53M, respectively.
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 $10.89 yesterday.
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