Pandora Jumps On Buy Rating

Mike Herring

Pandora Media Inc (P) shares jumped 10.3% Wednesday after analysts at Stifel Nicolaus resumed coverage on the stock, with a ‘Buy’ rating, according to bidnessetc.com.

The company has not reported a yearly profit in the ten odd years it has been in existence; but sell-side analysts seem largely convinced that the future is bright for the internet-radio company.

Analysts at Stifel believe that integration of Pandora radio in automobiles as well as plans to expand the company globally will lead to a significant increase in the number of listeners and listening hours in the near future. Moreover, Pandora is the only digital company that has the potential to make its mark in the radio-advertising industry.

Additionally, Pandora CFO Mike Herring presented today at a conference hosted by Oppenheimer. Apart from reiterating many figures from the 2Q earnings call, Herring spoke about how the company’s revenues had been increasing due to rising average cost per thousand impressions (CPM) for the ads that run on its platform. Pandora started selling local radio two years ago and has expanded the service, which is now present in 37 local markets across the US.

On CNBC, Mike Herring discussed Pandora Internet radio's music genome project and competition with Apple.