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Pandora surges following JPMorgan note, hedge fund disclosures

  • Three days after Needham issued a bullish note on Pandora (P +6.2%) ahead of its Nov. 21 FQ3 report, JPMorgan is joining in. The firm has raised its PT to $35 from $25, while declaring the Internet radio leader is nearing a revenue "inflection point" thanks to share gains and salesforce investments.
  • Also helping Pandora: Hedge funds Coatue Management and Tiger Consumer Management (both offshoots of Julian Robertson's Tiger Management) have disclosed they respectively opened 1.1M and 2.9-share positions in Pandora in Q3. Between them, Coatue and Tiger Consumer owned over 2% of the company at quarter's end.
  • Stephen Mandel's Lone Pine Capital owned 10.1M Pandora shares at the end of Q3, unchanged from when Lone Pine originally disclosed a position in the company on Oct. 3. (13F)
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Comments (7)
  • mpreng101
    , contributor
    Comments (9) | Send Message
     
    I think Pandora offers a great product, but $35 is way too expensive for this stock. They are not really profitable and I just feel like Apple could shake things up for them. Given the stock's momentum and the market's love for overvaluation, I wouldn't be a buyer or seller of this company.
    15 Nov 2013, 01:47 PM Reply Like
  • classixm
    , contributor
    Comments (25) | Send Message
     
    You are correct and I'm anticipating a big sell the news when the earnings are announced. It seems strange to me that there were recent insider sales when the stock is on a tear....
    15 Nov 2013, 02:49 PM Reply Like
  • trollipop
    , contributor
    Comments (30) | Send Message
     
    Pandora may go to $40 after earnings next week due to short squeeze!
    15 Nov 2013, 03:15 PM Reply Like
  • windeo
    , contributor
    Comments (11) | Send Message
     
    Buying or short-covering from these upgrades is foolish, since J.P. Morgan and Needham are both underwriters of Pandora's latest offering. Earnings next week making some shorts queazy (and rightfully so), but I'd be cautious taking any "upgrade" advice from the following institutions:

     

    "The bookrunning managers of the proposed offering will be J.P. Morgan and Morgan Stanley. Wells Fargo Securities, BofA Merrill Lynch, BMO Capital Markets, Canaccord Genuity, Needham & Company, Pacific Crest Securities, Piper Jaffray and William Blair will act as co-managers."
    15 Nov 2013, 05:35 PM Reply Like
  • dgulick
    , contributor
    Comments (1625) | Send Message
     
    Needham bowed out of the secondary. Also there are similar PTs from analysts not involved:

     

    Analyst PT premium_from_current_s...
    Susquehanna $36 +25%
    Goldman Sachs $35 +22%
    Needham $33 +15%
    RBC Capital $33 +15%
    19 Nov 2013, 04:09 PM Reply Like
  • Ron Reed
    , contributor
    Comments (293) | Send Message
     
    Nov 25 (10 days later)

     

    Pandora Media Cut to Equalweight From Overweight by Morgan Stanley >P
    26 Nov 2013, 07:39 AM Reply Like
  • dgulick
    , contributor
    Comments (1625) | Send Message
     
    But upgraded post-earnings by RBC, Cowen and Wedbush. Here's all the analysts I've collected:

     

    Analyst PT Premium Potential
    Piper Jaffray 37 +32%
    Wells Fargo Securities 36 +29%
    Susquehanna 36 +29%
    J.P. Morgan 35 +25%
    Canaccord Genuity 35 +25%
    Goldman Sachs 35 +25%
    RBC Capital 35 +25%
    Cowen 34 +21%
    Needham 33 +18%
    Wedbush 33 +18%
    26 Nov 2013, 09:46 AM Reply Like
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