Analysts expects Pandora Media Inc (NYSE:P) to deliver strong second quarter results
Pandora Media Inc (NYSE:P), the Internet radio company in the United States, is slated to announce its earnings results for the second quarter on Thursday, August 22, 2013. Analysts expect the company to post strong earnings owing to the gaining momentum in the mobile audio advertising.
Pandora, which captures around 7.8% of total US radio market share, will continue to see its share increasing in this space, believe analysts. This is an increase from 6.13% which was reported last year. For the second quarter, analysts estimate Pandora’s revenues to increase 56% year-over-year reaching $158.2 million.
Last week, Goldman Sachs’ analyst upgraded Pandora Media’s to “buy” rating from “neutral” rating, and gave it a price-target of $27 per share from $18.00. In addition, analysts at Needham & Company upped their price target on Pandora shares from $20.00 to $25.00 and have set a “buy” rating on the stock. UBS AG also upgraded shares from a “neutral” to a “buy” rating, giving Pandora stock a price target of $27.00.
Total two research analysts have issued a “sell” rating, eight have assigned a “hold” rating and twenty have given a “buy” rating to Pandora Media’s stock. Currently, the company enjoys a consensus rating of “Buy” and an average target price of $18.59.
In the month of July, listener hours for Pandora were 1.28 billion, an increase of 14% from 1.12 billion last year. Active listeners increased 30% to 71.2 million from 54.9 million during the same time period last year, the company said. The company is currently present in 28 of the top 40 markets. Pandora lets users create up to 100 personalized stations to enjoy unlimited hours of free music. It also offers a paid subscription service, Pandora One. This all makes Pandora Media in a strong position.