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UPDATE: Stifel Nicolaus Downgrades Pandora Media on Balanced Risk/Reward

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Detwiler Fenton Negative On Pandora; Sees Value Eroding As Other Players Enter The Space
Morgan Stanley More Convinced Pandora Can Secure Broad Rights Without Giving Up Core Economics
Keeping Up With SiriusXM And Liberty Media (Seeking Alpha)

In a report published Friday, Stifel analyst Jordan Rohan downgraded the rating on Pandora Media (NYSE: P) from Buy to Hold, and removed the $23.00 price target.

In the report, Stifel noted, “We have reduced our rating on Pandora from Buy to Hold. Three reasons: 1) The investment story for Pandora has shifted back from a focus on margins, including constraints on hours streamed, to a focus on market share at the expense of margins. 2) Upside in the July quarter came from sub revenues, not ad revenues, and this growth in subscriber revenues is likely to subside. 3) Shares were within 6% of our prior $23 target, not providing sufficient upside to ride through the volatility that comes with intensifying competition in the Internet radio market.”

Pandora Media closed on Thursday at $21.71.

Latest Ratings for P

DateFirmActionFromTo
Jul 2016Pacific CrestDowngradesSector WeightUnderweight
Jul 2016Piper JaffrayUpgradesNeutralOverweight
Jun 2016Morgan StanleyUpgradesEqualweightOverweight

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Posted-In: Jordan Rohan Stifel NicolausAnalyst Color Downgrades Analyst Ratings

 

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