Analyst: Pandora investors "need to depart the bus"

|About: Pandora Media (P)|By:, SA News Editor

"Pandora (P -14.2%) faces a significant growth rate decline, and we think investors need to depart the bus and seek alternate modes of transportation,” is the blunt assessment of Albert Fried analyst Rich Tullo, who believes the stock’s decline will get worse before it gets better.

The key worry is Pandora’s count of active listeners, which grew 8% Y/Y to 75.3M in Q1, but that isn’t strong enough for some analysts, who worry that newer services, such as Apple's iRadio, Spotify and others, could pressure growth in the future (Q1 results).

Fried thinks the growing competition and high costs will continue to crimp Pandora’s bottom line and ultimately weigh on the stock price, whose target he cuts to $20 from $23.

Earlier: Other analysts are not as pessimistic.