Albert Fried & Company Downgrades Pandora (P) to Underweight
- Wall Street turns defensive on Trump's protectionist stance
- Aetna's (AET) Humana (HUM) Takeover Blocked by Judge as Anticompetative
- Trump signs order withdrawing U.S. from Trans-Pacific trade deal
- Qualcomm (QCOM) Thrashed as Apple (AAPL) Lawsuit Threatens Licensing Business Model
- McDonald's (MCD) Tops Q4 EPS by 3c
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Albert Fried & Company downgraded Pandora (NYSE: P) from Overweight to Underweight with a price target of $8 following the release of Q3 results and guidance. Analyst Rich Tullo thinks the company is no longer a target.
Tullo explained, "Given the negative guidance, negative FCF, and convoluted business model we think Pandora is no longer a takeover target. Negative guidance and ad revenue alone would not have changed our view as a lull would have supported a deal. However, Pandora is making the business less attractive to a strategic buyer because Pandora is burning cash while taking risks with its user base. Moreover Pandora is not focused on growing users of Pandora Radio which essentially drives the rest of the business. The risk Pandora just created is it will now drive users from Pandora to iTunes or Spotify."
Shares of Pandora closed at $12.18 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: CLSA Downgrades Qualcomm (QCOM) to Underperform
- Pandora (P) on Watch After Sprint Takes Stake in Tidal
- Xilinx (XLNX) PT Raised to $55 at Deutsche Bank Ahead of 3Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades, Hot Comments, Hot Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!