Topeka Capital Starts Pandora (P) at Hold

Topeka Capital initiated coverage on Pandora (NYSE: P) with a Hold rating and a price target of $30. Analyst Victor Anthony thinks the company has a great product but he has concerns about competition and content costs.

"Most Pandora users we speak with love the service and use it often, and in fact, active users spent on average 22 hours per month listening to Pandora in 2Q14. Pandora ranks high and above peers on brand awareness and usage. However, competition is increasing and users are splitting time with other Internet audio services, potentially pressuring user growth metrics. In addition, Pandora could potentially face escalating content costs beginning in 2016," said Anthony.

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 $25.43 yesterday.

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