Pandora Media Shares Gain More Than 4% Premarket After Upbeat Analyst Note

Shares of internet radio company Pandora Media Inc. were up 4.5% in premarket trade on Monday after an upbeat analyst note. SunTrust analyst Matthew Thornton sent a note to investors on Monday following a meeting with Pandora interim Chief Executive Naveed Chopra. Thornton's key takeaways from the meeting were that the subscription model that many analysts feel Pandora was late to isn't going away, but the company plans to drop investment to maintenance levels. Pandora also plans to increase its focus on monetizing radio, while reallocating subscription investment to sales hires and ad technology. The company also wants to increase focus on cost efficiencies. Thornton said Chopra told him that Pandora's hours growth could hinge on new content and that more details will be available in the coming quarters. Thornton maintains a buy rating on Pandora and a $10.50 12-month price target, which is about 11% above current trading levels. Pandora shares have declined more than 27% in the year to date, while the S&P 500 index is up more than 10% during the same period.