Shares of Pandora (P) were recently rising 7% in afternoon trading on news that its offerings ranked well in comScore Media Metrix�s new multimedia audience measurement system.
The new system assesses audience size and demographics for websites, mobile device apps and online video; in September, Pandora ranked 23rd in Internet audience across all platforms, with 59.9 million unique visitors total. The new system�s inclusion of apps helped reflect Pandora�s often mobile audience�using a web-only approach, it would have ranked 61st.
The stock is also benefiting from a bullish note out by Canaccord�s Michael Graham, who reiterates his Buy rating and $16 price target, noting that while Apple�s (AAPL) potential entrance into this market is certainly a risk, it�s already reflected in the stock (which has fallen more than 20% year-to-date).
He notes positives include �potential for continued Mobile RPM growth, relatively low expectations with consensus essentially in line with guidance for Q3 and Q4,� which create a positive risk/reward scenario ahead of the company�s earnings, even as Apple remains a threat and a faster-than-expected shift to mobile could depress RPMs.
Graham concludes, �We expect the stock to remain quite volatile around a long-term upward trend that eventually acknowledges that 1) Pandora�s user base is likely fairly loyal to the brand and 2) mobile
monetization is likely to improve significantly.�
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