Pandora Media Inc. may be poised for some decent growth, according to B. Riley analyst Sameet Sinha. Sinha upgraded the stock to a buy rating from neutral on Monday, while also raising his 12-month price target to $15 from $10. He wrote in a note that expectations for Pandora are “very low,” indicated by its valuation — close to three-year lows — and estimates for listener metrics. “Even from a fundamental perspective, key revenue metrics, such as active listeners and listener hours are expected to grow by 1% and 4%,” he wrote. Sinha noted Pandora’s pricing power is growing, up 40% in the first quarter, compared with the previous year period. He also expects margins to grow, after negotiations over royalty rates with the Copyright Royalty Board drove up content costs in the first quarter. “Now the company has good visibility on content costs until 2020.”
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News