NEW YORK (TheStreet) -- Pandora Music (P) stock is down 0.04% to $12.44 in afternoon trading despite concern among investors that a potential deal between Jay Z's Tidal music service and Apple (AAPL) could be harmful to the company.

Dougherty & Co. wrote in a note today that the deal would signal that the already-competitive market for music streaming services is "heating up." The firm has a "neutral" rating on the stock.

Considering the landscape of the market today, the firm added that it is "skeptical" Pandora will be able to reach margin targets.

Apple's move on Tidal signals the company's eagerness to expand upon and grow its own music service, Apple Music, which launched last year.

The Wall Street Journal reported that talks are ongoing, but the companies may not close on the deal.

Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D. 

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

Recently, 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. 

Image placeholder title