After Pandora's Q3 revenue and listener metrics came in below expectations and it provided lower than expected Q4 revenue guidance, Stifel notes that the company's ad revenue accelerated slightly, while its monetization rates reached record levels last quarter. The firm views Q3 as "a bump in the road on the way" to a positive royalties decision and potentially strong 2016 results. Stifel thinks that the company's efforts to repair its relationship with the music industry could enable it to offer new products and expand overseas. It trimmed its price target on the name to $27 from $30 and keeps a Buy rating on the shares.