The firm initiated coverage of the stock with a "neutral" rating and a $10 price target.
Analysts are staying on the sidelines as competition continues to intensify in the streaming music industry.
It looks like the company is in "investment mode this year to play catch-up with Spotify's on-demand service offerings," the firm said.
Furthermore, Pandora is losing share in the U.S. as more and more younger listeners gravitate towards rival Spotify's streaming service.
On Monday, the Internet radio company announced that Spotify founder Tim Westergren is returning to the company and will replace Brian McAndrews as CEO effective immediately.
This instilled concern in investors as it signals that the Oakland, CA-based company will not consider selling itself, Barron's said.
Separately, Pandora has a "Sell" rating and a letter grade of D at TheStreet Ratings because of the company's deteriorating net income, disappointing return on equity, weak operating cash flow, disappointing stock performance and feeble earnings per share growth.
You can view the full analysis from the report here: P
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.