Shares of Pandora Media (P) were surging over 4% in afternoon trading on Tuesday as Morgan Stanley analyst Benjamin Swinburne reiterated his "Overweight" rating on the music streaming service's stock.

The upgrade is reflective of Pandora's decision last week to name former Dish Network (DISH - Get Report) executive Roger Lynch as its new CEO which will enhance the company's "focus" which could "drive healthy upside," Swinburne wrote in a note obtained by Barron's.

That focus is pivoted back to ad dollars, which remains the primary way to monetize music as opposed to Pandora's previous shift towards a subscription-based model, he added. Further, he argues Pandora holds a "competitive" advantage in ad-supported radio.

Swinburne suggests Pandora could drive its ad dollars further by focusing investments on various ad tools, a boost in its ad load, and to develop interactive ads for smart speakers like Amazon.com's (AMZN - Get Report) Echo.

"Focus will undoubtedly help," Swinburne said, but "how much?" he asked. "With shares just over 1x '18E revs, any tangible signs of improvement should drive healthy upside," he contended.

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