Needham posts its top media picks for 2014 - P, RATE, CBS
Needham notes P is down 25% since March 5th (vs S&P down 1%). Pandora is firm's top pick for 2014 as firm expects upside to be driven by income statement overdelivery, multiple expansion, and new revenue stream optionality. RATE is down 20% since Feb 18th (vs S&P up 1%). Firm recommends purchase at these levels owing to: 1) credit card revenue momentum, including new slotting fees, plus 80% profit margins; (2) insurance business stable and pricing improving; among other factors. CBS is firm's top pick in our old-economy coverage, owing to upside from: 1) $220mm of political advertising revenue (its estimate) in FY14; 2) retransmission and reverse compensation revenue momentum; among other factors.