Pandora (P) Price Target Raised to $36 at Goldman Sachs

Goldman Sachs maintained a Buy rating on Pandora (NYSE: P) and raised its price target to $36.00 (from $35.00). Comments follow Q2 results.

Analyst Heath P. Terry said, "Pandora reported 2Q revenue of $218.9mn, above our estimate of $217.9mn and consensus of $218.3mn. Adjusted EBITDA came in at $12.6mn, above our estimate of $9.3mn and consensus of $9.7mn. The company raised its full year 2014 guidance by $15mn in revenue and $0.02 in non-GAAP EPS at the midpoint of their range. We continue to believe there is considerable upside to growth expectations as local advertisers move online and Pandora leverages investments in sales, technology, targeting, and ad buying platform integration, against its existing expense base. Therefore, we remain Buy rated."

"Pandora broke down mobile and local ad revenue for the first time, with mobile ad revenue reaching $134.4mn or 76% of the total, and local ad revenue at $35.3mn or 20% of the total. The improving mobile monetization and better local sell through rates lead us to believe mobile ad RPM growth will accelerate in 2H14," he added.

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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