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."

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 $12.18 yesterday.