Bernstein analyst William Woods maintained a Sell rating on Pandora A/S today and set a price target of DKK700.00.
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William Woods has given his Sell rating due to a combination of factors that indicate a challenging outlook for Pandora A/S. The company appears to be entering a downturn phase, with a noticeable slowdown in like-for-like sales across most regions. Despite the initial success of the CEO’s turnaround strategy, the business has not transformed into a sustainable high-margin growth story.
Woods points out that Pandora has significantly increased prices, which has led to a drop in volumes, and the growth engine, ‘Fuel With More,’ is losing momentum due to infrequent replenishment and high product costs. Additionally, external factors such as foreign exchange, commodities, and tariffs have exacerbated the situation, making growth heavily reliant on the US market. The company’s strategy of prioritizing stable margins over volume growth is seen as risky, potentially leading to a margin reset cycle. Woods also notes that Pandora’s valuation remains high compared to historical levels, and he anticipates disappointing growth targets and margins at the 2026 Capital Markets Day.
In another report released today, UBS also maintained a Sell rating on the stock with a DKK950.00 price target.