Most stocks are trading higher in Friday’s session, but not Pandora Media, whose IPO was busted Thursday after only one up day on the NYSE. The stock opened Friday at $13.00 – below both the Wednesday close of $13.26 and the IPO price of $16.00.
UPDATE: Pandora managed a modest recovery late in Friday’s session and closed at $13.40 – up 14 cents for the day but still well below the $16.00 IPO price.
Pandora now has official coverage by a second Wall Street analyst. Richard Greenfield of BTIG Research, who had been a critic of the IPO, has initiated the stock with a “sell” rating and a target price of $5.50. That’s actually up from his pre-IPO estimate of $4-5 as the real value of the stock.
Greenfield joins John Tinker of Maxim Group in covering the stock. They have somewhat differing views of the company’s worth. Tinker rates Pandora a “buy” with a target price of $23.
RBR-TVBR observation: That’s an incredible spread – analyst valuations from $5.50 to $23.00. For now, the market is moving in Greenfield’s direction.