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NEW YORK (TheStreet) -- Pandora Media (P) stock rating was downgraded to "underweight" from "sector weight" at KeyBanc this morning after reporting mixed fiscal 2016 second quarter results. 

The Oakland, CA-based music streaming service reported revenues of $343 million, compared to analysts' estimates of $351 million, and a loss of 12 cents per share vs. analysts' estimates of a loss of 16 cents per share. 

Additionally, the company is expecting to report revenues between $360 million and $370 million for the current quarter vs. analysts' estimates of $378 million. 

"Pandora's core operating leverage has deteriorated, and we see little prospect for meaningful profits in on-demand," KeyBanc explained. 

Yesterday, Pandora's stock climbed after the Wall Street Journal reported a potential takeover bid from Liberty Media (LMCA), but KeyBanc says it doesn't think M&A is possible at the stock's current valuation.

"We do not recommend owning P," the firm concluded.  

Shares of Pandora are down 1.08% to $11.87 in early-morning trading. 

TheStreet Recommends

Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:

We rate PANDORA MEDIA INC as a Sell with a ratings score of D. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: P

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