Wall Street's Take On The Pandora Copyright Ruling

• Wednesday’s CRB ruling has sent Pandora Media Inc P shares surging.
• The market and Wall Street seem to universally view the decision as favorable for Pandora.
• However, Wall Street remains mixed on the outlook for Pandora’s stock.

The long-awaited Copyright Royalty Board (CRB) decision is in, and the market seems to think that it's good news for Pandora Media. The decision by the board to set copyright royalties at $0.17 per hundred songs ad $0.22 for subscription-based music in 2016 has sent Pandora's stock soaring more than 13.3 percent in early Thursday trading.

The market certainly sees the decision as good news for Pandora, but what does Wall Street think? Here's what five leading firms have to say about the ruling's impact on Pandora.

FBR & Co

Analyst Barton Crockett says news is “better than feared” and good enough for Pandora to deserve an upgrade to Market Perform. FBR maintains a $16 price target for the stock.

Related Link: Despite Positive CRB News, Pandora Can't Forget About Costs

Piper Jaffray

Analyst James Marsh sees the decision as “a net positive for Pandora, allowing it to scale its business in the outer years as costs flatten out in 2017.” Piper Jaffray has a Neutral rating on Pandora and a $17 target for the stock.

Credit Suisse

Analyst Stephen Ju believes that the CRB decision means that Pandora shareholders are now free to re-focus on the company’s fundamental business. “With the overhang of the CRB decision now out of the way, we expect investor focus to shift back towards Pandora’s existing ad-sponsored business as well as the upcoming on-demand product,” he explained. Credit Suisse maintains a Neutral rating on Pandora.

Albert Fried & Co

Analyst Rich Tullo calls the CRB ruling a “pop hit,” and has upgraded the stock from Underweight to Overweigh following the decision. The firm also raised its price target from $11 to $20.

Analyst Michael Pachter also believes the ruling “should be largely viewed as a favorable outcome for Pandora.” Wedbush maintains its Outperform rating on Pandora and its $26 price target.

Disclosure: the author holds no position in the stocks mentioned.