Albert Fried & Company Sees Balanced Risk And Potential For Pandora Media

In a report published Friday, Albert Fried & Company analyst Rich Tullo reiterated an Underweight rating and $16.00 price target on Pandora Media Inc (NYSE: P).

In the report, Albert Fried & Company noted, “Pandora shares are down 20% since November 19, 2014 as compared to the S&P 500 which is off 2% during the same period. On November 19th we wrote ‘We are confident in our 12 month $16 Target and we are confident in the belief an acquirer is not forthcoming given the ample due diligence risk associated with unknowable long term costs over the next six months compounded by flattish usage growth.' Today our price target is unchanged because we see near term earnings and headline risk balanced by long term potential. We think the M&A rumors did long term shareholders a disservice by inflating the share price and the excess could have dissuaded an authentic buyer due to the price spike and the sell off destroyed $3 billion in shareholder value in the process.”

Pandora Media closed on Thursday at $15.34.