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Pandora to rally 34%, Goldman Sachs says

A banner for Pandora Media, the online-radio company, hangs in front of the New York Stock Exchange.
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Investors should buy Pandora Media shares on the prospect of accelerating growth from new products, according to Goldman Sachs, which reiterated its buy rating and added the company to its Americas conviction buy list.

"While the company faces meaningful execution and competitive risks as it launches new subscription models and transitions its ad-supported business to direct label relationships, we see significant potential upside to out-year estimates from premium radio and on-demand subscriptions," Goldman's Heath Terry wrote in a note to clients Tuesday.