NEW YORK (TheStreet) -- Shares of Pandora (P) are climbing 4.51% to $13.66 in pre-market trading Wednesday as Piper Jaffray raised its rating on the stock to "overweight" from "neutral," MarketWatch reports.
The firm also upped its price target to $18 from $12 on shares of the Oakland, CA-based music streaming service.
The higher rating reflects optimism about the possible outcome of music label negotiations and improving margins across its radio business, Piper Jaffray said.
Additionally, the upgrade also reflects the upcoming release of a new on-demand platform, which could add an incremental 9.2 million subscribers or about $750 million in revenue in the next three years, MarketWatch noted.
"Pandora is approaching the inflection point...We see meaningful upside ahead," the firm wrote in an analyst note.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: P