Skip to main content

Market Overview

2 Reasons Pandora Bulls Might Lose The Long-Term Battle

2 Reasons Pandora Bulls Might Lose The Long-Term Battle

In a report published Monday, Axiom Capital Management analyst Victor Anthony initiated a Hold rating on shares of Pandora Media Inc (NYSE: P), noting there is a lot of uncertainty surrounding the company's future.

Anthony offered two arguments that highlight uncertainty and clouds the long case.

Negative CRB Ruling A Possibility

The risks Pandora faces later this year from the CRB rate decision appear "well understood" by investors, with a negative ruling impairing the stock, while a rational ruling would keep management's focus on executing strategies the company laid out during its Analyst Day presentation.

Anthony continued that most industry experts he had spoken to indicate an adverse ruling is a likely outcome, though it is not certain. As such, it is difficult to buy into the stock even at current depressed share prices that have lost nearly 60 percent from its highs.

Related Link: Why Is The EU Investigating Apple, Pandora?

Competitive Environment Continues To Toughen

According to Anthony, competition remains a key issue for Pandora with new entrants to the market pressuring the company's growth. The analyst noted that every year Pandora faces a new online streaming competitor, this year being TIDAL, backed by several notable music superstars including Jay-Z and Madonna.

Anthony added that a broader issue is whether subscription-based, on-demand models are gaining appeal at a point when Pandora has backed away from pursuing this model.

Latest Ratings for P

Nov 2018Canaccord GenuityDowngradesBuyHold
Oct 2018Goldman SachsDowngradesBuyNeutral
Oct 2018BMO CapitalDowngradesOutperformMarket Perform

View More Analyst Ratings for P
View the Latest Analyst Ratings


Related Articles (P)

View Comments and Join the Discussion!

Posted-In: Axiom Capital Management CRB Streaming music TidalAnalyst Color Short Ideas Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

VZIOWells FargoInitiates Coverage On31.0
OMWells FargoInitiates Coverage On63.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at