SunTrust Robinson Humphrey Downgrades Pandora (P) to Neutral

SunTrust Robinson Humphrey downgraded Pandora (NYSE: P) from Buy to Neutral with a price target of $15.00 (from $18.00), saying increasing investment to weight on near-term profits

Analyst Robert Peck commented: "Despite the CRB decision being behind us, we think the pursuit of new TAMs will increase NT costs & risks, weighing against 2016 & 2017 profits. Pandora's focus on new interactive service and int'l expansion require direct deals with labels that raise several risks: new deal economics, untested int'l markets, and increasing competition. We think NT profitability (EBITDA) will need to come down meaningfully, while Pandora builds for the LT. As such, we believe its will be hard for the stock to outperform over next several months; hence we are reducing rating to Neutral & PT to $15 from $18."

For an analyst ratings summary and ratings history on Pandora click here. For more ratings news on Pandora click here.

Shares of Pandora closed at $13.41 yesterday.

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