UPDATE: Nomura Initiates Pandora at Reduce on Structural Weakness

Nomura initiated coverage Pandora (NYSE: P) with a Reduce rating and a $8.50 price target. Nomura commented, "Pandora is the US Internet radio leader (~78% of total US Internet radio use). However, online radio is a structurally weak industry with low barriers to entry. New competitors continue to emerge, and deep-pocketed technology companies pose significant threats. Even if P “wins” the battle to capture more users, we think the Street is overestimating its ability to draw local radio ad dollars and to improve monetization."Pandora closed at $10.89 on Monday.