Pandora drops following Albert Fried downgrade
- Less than a month after upgrading Pandora (P -3.1%) to Market Perform, Albert Fried's Rich Tullo has downgraded shares back to Underweight. His target has been cut by $4 to $16.
- Not surprisingly, Pandora's Q3 metrics are on Tullo's mind. "As Pandora’s monthly usage flattens below our original forecast to 76.6 million as compared to 78 million, we think Pandora will be challenged to manage content costs while expanding revenue at the current ad load." He adds Pandora risks losing users to rivals if it "expands ad load too fast."
- Tullo calls Pandora's launch of an Artist Marketing Platform (AMP) for musicians a positive, but considers it "too little too late," and says it "feels like a fig leaf" ahead of Copyright Royalty Board rate hearings.
- Pandora fell 20% in the time between Tullo's upgrade and downgrade.
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