Pandora (P) Target Cut to $30 at SunTrust Robinson Humphrey Amid Mixed Q3
SunTrust Robinson Humphrey analyst Robert Peck lowered his price target on Pandora (NYSE: P) to $30.00 (from $34.00) following results but maintained a Buy rating.
Peck comments, "Mixed quarter with monetization (RPMs) and margins driving the beat and raise. Forward EBITDA and EPS should move higher. Slowing Active Users and the Q/Q dip in Listener Hours is a blemish and will get a lot of attention. However, the company has runway to increase monetization of its existing inventory (each user hour has a cost, thus to drive more hours without being able to monetize against those hours is not a good strategy) and thus time to address user growth. To this point, managment is turning attention to user growth with new marketing initiatives. We also note in-auto listening is a 10-year secular tailwind for listener hours and Int'l offers material opportunity to add users."
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Shares of Pandora closed at $23.12 yesterday.