Topeka Capital earlier maintained a Buy rating on Pandora (NYSE: P) with a price target of $30. The stock declined after reporting Q3 results. Analyst Victor Anthony thinks the pullback creates a buying opportunity.

"Pandora reported a solid quarter with in-line revenues, upside to Adj. EBITDA and Non-GAAP EPS, and guidance that was solid. User growth and content costs headlines are likely to dictate how the stock trades over the next several months. However, the pullback in the shares post earnings creates an additional opportunity for investors who missed the recent share price contraction tied to the de-risking environment," said Anthony.

"We continue to believe that the user growth concerns and content costs uncertainty we raised in our initiation report on 9/30, while still valid, are priced into the shares. Pandora is working to stabilize user growth and after viewing the CRB proposals, we agree that the outcome is likely to be rationale. In the interim, local advertising monetization should support the shares," 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 $23.12 yesterday.