Pandora's stock keeps sliding downhill


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.