Investment firm Morgan Stanley on Wednesday resumed coverage of music streaming giant Pandora's ( P) stock with an "Overweight" rating and a $12 price target.
Cash from Sirius XM, which just took a stake in Pandora, leaves the company's ultimate strategic impact unclear for now, but it does stabilize its balance sheet, Morgan Stanley analyst Benjamin Swinburne noted.
Furthermore, Pandora's large user base has provided the company with room to grow its share of advertising, he contends.
"Pandora's 80 mm monthly active users spend over 20 hours a month on the platform. We believe high single digit annual ad revenue growth in '18-'20 should be achievable through a combination of rising ad load and rising ad prices as Pandora continues to target the $15 billion terrestrial radio market and even larger mobile display market," Swinburne noted.
Shares of Pandora were flat during late morning trading on Wednesday.
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Volvo is no longer feeling gas engines: Ford's (F) founder Henry Ford may be rolling over in his grave on this one. Volvo Cars said Wednesday that all of its cars will feature an electric engine from 2019, as it embraces of the new technology in the face of industry-wide adoption. The Swedish car maker will roll out a mix of all-electric, hybrid and mild hybrid cars from 2019 and will no longer offer vehicles that carry just a traditional internal combustion engine, TheStreet reports.
