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Fly News Breaks for May 19, 2017
LSXMA, P
May 19, 2017 | 06:22 EDT
Macquarie analyst Amy Yong downgraded Pandora (P) to Neutral from Outperform and trimmed her price target to $11 saying potential M&A is to "tough to call" and fundamentals are "choppy." Yong said Liberty SiriusXM (LSXMA) is expected to remain financially disciplined and opportunistic, and unlikely to pay a substantial premium for Pandora. The analyst believes Pandora could sell Ticketfly which would free up financial capacity and help management focus on the core business, but said if neither a sale or M&A materializes, its standalone strategy will be the focus. As a result, Yong trimmed Pandora ad and subscription estimates to reflect the increasingly competitive environment and said profitability remains a question.