The firm upped its price target to $15 from $10 on the stock.
Expectations for Pandora are "very low," as evidenced by its low valuation and estimates for listener metrics, B. Riley wrote in a note, MarketWatch reports.
"Even from a fundamental perspective, key revenue metrics, such as active listeners and listener hours are expected to grow by 1% and 4%," the firm mentioned.
Pandora's pricing power is improving, up 40% year-over-year in the first quarter, B. Riley noted. The firm also expects that margins will grow after negotiations about royalty rates boosted content costs during the first quarter.
"Now the company has good visibility on content costs until 2020," B. Riley contended, according to MarketWatch.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Pandora's weaknesses include its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: P
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 article's author.