The following is an excerpt from Tiernan Ray | July 2, 2012 | Barrons.com |
Raymond James’s Aaron Kessler this morning raised his rating on shares of Internet radio purveyor Pandora Media (P) to Outperform from Market Perform, with a $14 price target, arguing that his survey of 422 Internet users showed the company is “well positioned competitively, #2 only behind [Apple's (AAPL)] iTunes.”
Kessler writes that his survey shows the potential for Pandora’s usage to either hold stay or increase in the next year:
Our survey indicates that of total Pandora users (n=268 or 64% penetration), 38% expect to increase usage of Pandora over the next 12 months, 58% expect no change in use, and only 4% expect to decrease usage. In general, users expecting to increase usage over the next 12 months far outweighed those expecting to decrease usage across all age cohorts, including the 18-29 cohort (n=61) of which 38% expect to increase usage and 11% expect to decrease usage, the 30-44 cohort (n=103) of which 42% expect to increase and 1% expect to decrease, the 45-60 cohort (n=70) of which 31% expect to increase and 4% expect to decrease, and the over 60 cohort (n=24) of which 29% expect to increase and 4% expect to decrease.
Moreover, that 38% potential for increased usage is close behind the 46% of users of startup Spotify‘s service, writes Kessler, and the 39% for users of Google‘s (GOOG) “Google Music,” and ahead of a 32% figure for iTunes, and a 30% portion of people saying they’ll increase use of Amazon.com‘s (AMZN) “Amazon Music.”
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