If you’re looking for entertainment stocks, you might want to think about adding Pandora Media (NYSE:$P) to your investment portfolio. On Monday, July 24, Pandora Media shares were moving higher in trading after Jana Partners, an activist hedge fund, reportedly made an investment in the Oakland-based company the same day Pandora was the focal point of a bullish research report from SunTrust.
Based on media reports, a person close to the matter told Bloomberg that the hedge fund believes Pandora Media shares are undervalued and that there is room for growth from advertising revenue. As of right now, it is still unclear as to how much Jana Partners is investing in the company.
Independently, MarketWatch announced that SunTrust issued a bullish research note on the internet radio service after meeting with Navved Chopra, who is the interim Chief Executive. Additionally, Matthew Thornton of SunTrust has said that Pandora’s subscription model isn’t going anywhere. In fact, to top it off, Thornton said that Pandora is increasing its focus on monetizing radio and dividing money it invested on subscriptions to hire more people for sales and for advertising technology. Thornton added that Pandora also wants to focus more on cost efficiency.
Brand New Content
Chopra, the CEO of Pandora, has said that the company is looking for new content and that more details on that will come in the next couple of quarters. Currently, Thornton has a ‘Buy’ rating on the company and a price target of $10.50. Because Pandora Media shares have recently been trading at $9.60 a share, the SunTrust analyst forecasts that the stock could gain an additional 9% in 2017. It’s worth noting that, since the start of 2017, Pandora has dipped more than 24%.
Seeing as broadcast services are enduring a difficult and highly competitive environment, the investment from Jana Partners is welcome news for Pandora Media.
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