UPDATE: Albert Fried & Company Upgrades Pandora Media Inc

Albert Fried & Company upgraded Pandora Media Inc (NYSE: P) to Market Perform on Tuesday with a $20 price target.

Analyst Rich Tullo claimed that Pandora still remains a sell as the company appears to be overvalued and that acquisition rumors are irrational. Pandora is currently in "a break even situation and could be facing significant double digit cost escalations in 2016."

Tullo observed that, “Pandora offers a great service and revenue growth potential. However, great Companies do not always offer attractive returns for equity investors. In this case given the downside to our $20 Target we think Pandora is a sell and the easy long money was already earned by value investors.”

Based on the reports conclusions, traders already short Pandora should begin paring down their short positions. “The shares may have one more down leg, but that’s all in our view.”

Tullo sees value in Pandora’s shares at the $13 to $16 level.

Pandora Media Inc traded at $24.24 midday on Tuesday.