Pandora's New On-Demand Product Not Met With Much Enthusiasm From Analysts
Pandora Media Inc (NYSE: P) has been feeling a lot of heat recently from increased competition in the music-streaming marketplace.
All the big players are trying to get a piece of the action, with recent news that Amazon.com, Inc. (NASDAQ: AMZN) was entering the space.
The increased competition has Credit Suisse lowering expectations of Pandora's future outlook. The company reduced its price target on the music service to $14 from $16 and maintained a Neutral rating on Pandora.
Related Link: Bank Of America Tuning Its Rating On Pandora Down To Underperform
Pandora looks to embrace change to embark on its new chapter with and the revised landscape of the industry where on demand streaming becomes more essential. Pandora's new on-demand product isn't expected to contribute to the bottom line until platform fees move up 15 percent starting in 2018.
2017 is seen as a period of initial investment for the on-demand service, as Pandora was late to the party in this respect. Credit Suisse expects Pandora to decrease its 2016 profit guidance.
Pandora shares were down 3.5 percent at $12.37 on Monday.
Latest Ratings for P
Oct 2016 | Bank of America | Downgrades | Neutral | Underperform |
Oct 2016 | Credit Suisse | Maintains | Neutral | |
Oct 2016 | Goldman Sachs | Maintains | Buy |
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