Bullish Analyst Raises Pandora Stock
March 5, 2012 at 2:03 PM (PT)
The price of PANDORA MEDIA stock increased when after STIFEL NICOLAUS analyst JORDAN ROHAN raised his rating for PANDORA from "Hold" to "Buy," with an $18 price target, the AP reports. The announcement raised PANDORA's stock price 88 cents, or 6.3%, to $14.78 in heavy trading.
ROHAN noted that PANDORA has evolved into a "must-have" application for tablets and smartphones and is building a sales force to boost its money-making efforts. With an audience he believes is bigger than that of a traditional radio station, ROHAN predicts earnings of 1 cent per share on revenue of $86.5 million in Q4. That goes against the grain of analysts polled by FACTSET, who predicted a loss of 2 cents per share on revenue of $83 million.
STIFEL NICOLAUS also increased its annual earnings expectations through 2013 because of expectations for more money from mobile ads.