Pandora: Worst Fears Brushed Aside

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Forbes.com, Spring, 2012. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.

Following Q1 results for Pandora (P), Canaccord Genuity e-commerce analyst Michael Graham said:

“Pandora reported a solid quarter that we believe brushed aside some of the worst fears about the company’s business model following its lackluster performance during Q4/F12”

He added, “We view the Triton announcement as an important step in penetrating the radio advertising market and believe the system integrations necessary to provide a seamless ad buying experience to advertisers will occur by the end of the year. However, we don’t expect revenue from this initiative to have a noticeable impact on revenue this year.”

Mr. Graham maintained his HOLD rating and $13 price target on the company.