Even with shares rebounding sharply this morning, Barclays Capital analyst Anthony DiClemente notes not all is strawberries and cream with the Oakland, Calif.-based company.
DiClemente noted that ad revenue came in below Street forecasts, and mobile monetization has not yet greatly improved. He rates Pandora "underweight" with a $9 price target.
Pandora CFO Steve Cakebread also announced on Wednesday that he's leaving the company, but JPMorgan analyst Doug Anmuth does not believe this is a significant concern.
With Pandora obtaining 6.13% of the radio market at the end of July, Anmuth believes the company will continue to take market share in not only online, but mobile and advertising as well. "We recognize that very strong growth in usage hours driven by mobile will continue to weigh on profitability in the near to mid term, but in the meantime we believe that Pandora will build significant market share and that the ability to monetize mobile hours will improve over the next few years and drop down to the bottom line."Shares of Pandora are up sharply in early Thursday trade, gaining 13.59% to $11.45. Interested in more on Pandora? See TheStreet Ratings' report card for this stock. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV