Pandora (P) is now available in all 10 of the bestselling passenger vehicles, with 5M new activations in Q1, notes Needham's Laura Martin, reiterating a Buy rating and $41 price target and sharing her key takeaways from the earnings call (transcript). "We estimate that P has a 5 year head start over other ad-driven streaming services." Her team raises expected FY EPS to $0.17 from $0.15 an sets FY15 EPS at $0.48.
Mobile ad revenue of $103M increased 59% Y/Y, driven by rising audio ads, say Cowen's John Blackledge, maintaining his Outperform and $41 price target. Mobile advertising RPM of $29.46, up 44% Y/Y was slightly ahead of his team's forecast. "As in-car listening hours ramp, currently ~5% of total listening hours, P is likely to air more in-car audio ads than on other devices to offset the inability to offer video/display ads."
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