Buy Pandora (P) on Weakness Post Q2 - Needham & Company

Needham & Company analyst Laura Martin reiterated a Buy rating and $41 price target on Pandora (NYSE: P) following mixed Q2 results.

Martin comments, "P reported mixed 2Q14 results of Non-GAAP revenue of $219mm (1% above our estimate) and Operating EPS of $0.04 (on top of our estimate). P raised its FY14 guidance, but gave 3Q guidance that was below consensus. We maintain estimates. The good news in 2Q14 was Mobile (83% of listening and 76% of ad revenue) and Local ad sales momentum (up 144% y/y). The bad news was tepid active user growth to 76.4mm (up 2% q/q and 7% y/y) and lower 3Q guidance (despite higher FY14 guidance). We recommend purchase on weakness and retain our $41 target price."

The firm maintianed FY 2014 EPS of $0.17 and FY 2015 EPS of $0.48.

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 $28.72 yesterday.

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