UPDATE: Morgan Stanley Reiterates Pandora at Equal-Weight; Competitive Positioning Not at Risk
Morgan Stanley reiterated an Equal-weight rating on Pandora (NYSE: P) as it believes the company's positioning is not at risk given barriers to new entrants in its space.
Morgan Stanley noted, "Recent speculation about established technology companies entering streaming music has sparked concerns about Pandora's competitive positioning. We identify several key challenges for potential entrants and believe Pandora's best-in-class service / distribution could help it remain on top. ... The level of interactivity in a digital music service dictates its content cost structure. Interactive services play songs on-demand, but must negotiate costs with record labels. Non-interactive services like Pandora typically pay lower content costs, but must abide by strict service limitations."
Pandora closed at $10.96 on Thursday.
Latest Ratings for P
|Mar 2015||CRT Capital||Upgrades||Fairly Valued||Buy|
|Feb 2015||JMP Securities||Initiates Coverage on||Market Perform|
|Feb 2015||Macquarie||Initiates Coverage on||Neutral|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.