Pandora Getting Warmer Reception From Wall Street
July 1, 2013 at 1:59 PM (PT)
Despite dealing with negative comments from PINK FLOYD (NET NEWS, 6/24), CRACKER (NET NEWS, 6/25) and the MUSICFIRST (NET NEWS, 6/26), PANDORA stock rose to a two-year high after MORGAN STANLEY painted a rosy future for the Net sensation. FOX BUSINESS reports that the financial concern upgraded PANDORA to "overweight" and set a $24 price target, citing the company’s move to lower its music royalty rates.
"Now that PANDORA is effectively on equal footing with broadcasters in competing for radio dollars, we think it can begin to take meaningful share of the market," MORGAN STANLEY analysts told its investors. They also cited PANDORA's acquisition of KXMZ/RAPID CITY, SD (NET NEWS, 6/11) to qualify for the same Internet royalty rates paid by traditional broadcasters. A PANDORA regulatory filing estimated that "the move could save nearly 1% of revenue, which totaled $70.6 million in the quarter ended APRIL 30th."