Pandora Media (NYSE:P) shares are among the most significant laggards over the last three years, with widening losses. Pandora shares dipped 54% in the previous year alone, down 85% from all-time high of $40 it hit in early 2014. Its stock trades around a 52-week low of $5 at present – with the market capitalization of $1.3 billion.

Its shares, however, are on the verge of a major rebound in analysts view, amid upbeat results and AdsWizz acquisition for $145 million.

Piper Jaffray believes improved monetization and relationship with Sirius XM are the catalysts for its share price appreciation. The firm has set the price target of $9 for Pandora stock.

Source Image: finviz.com

Pandora Media posted year over year revenue growth of 7% to $395 million in Q4, supported by strong growth in Ad RPM and subscription revenue. Its Ad RPM revenue landed at an all-time high of $75.65, and subscription revenue soared 63% to $97.7 million. Its total revenue of $1.467 billion in fiscal 2017 jumped 6% from the past year.

The company has also successfully narrowed its loss to $45 million in Q4 from $90 million in the year-ago period.

Pandora Media recently announced to AdsWizz for $145M, which will allow it to create the largest digital audio advertising ecosystem in the world. Raymond James upgraded its rating to strong buy with the price target of $8 after AdsWizz acquisition. “The deal is of a piece with Google’s strategy when it bought DoubleClick,” analyst Justin Patterson says.

>>Shutter Stock Shares Soar Despite Lower Earnings; Revenue Growth In Focus

Besides from acquisition, Pandora has also been working on organizational restructuring to redesign its portfolio and optimize business performance. The restructuring will result in annualized savings of close to $45 million to adjusted EBITDA, which the company is planning to reinvest in growth opportunities to strengthen its revenue base.

“From launching on-demand for our ad-supported listeners to expanding multiple device partnerships in the last quarter alone, we’re building a strong foundation for audience growth and improved monetization,” says CEO Roger Lynch.

Featured Image: Twitter