RBC Capital lifts Pandora stock rating to Sector Perform

On Thursday, RBC Capital Markets adjusted their stance on Pandora (OTC:PNDRY) A/S (PNDORA:DC) (OTC:PANDY), elevating the company’s stock rating from Underperform to Sector Perform, while maintaining a price target of DKK1,050.00. The revision comes after Pandora’s shares experienced a notable decline over the last three months, dropping approximately 26%. The firm’s analysts cited this share price weakness, along with reduced consensus estimates and what they consider to be more attainable margin targets set by the company for the fiscal year 2026, as reasons for the upgrade.

Pandora has demonstrated solid top-line trends in the first quarter and into April, with mid-single-digit like-for-like sales growth. The company’s management has also been consistent in executing their strategic plans. Despite the positive aspects, RBC Capital Markets noted that there are still uncertainties regarding the impact of external factors on earnings. These include potential tariffs in the United States, as well as the effects of unhedged gold and currency fluctuations.

The analysts have increased their earnings forecasts for fiscal years 2026 and 2027 by 3-4%. This adjustment reflects the company’s pricing strategies and cost management plans, which are expected to partially offset the negative impacts of foreign exchange movements.

The price target of DKK 1,050, which remains unchanged, was determined through a discounted cash flow analysis and a revised target price-to-earnings ratio, which was lowered from 15x to 13x. The report by RBC Capital Markets provides a detailed view of the current financial landscape for Pandora, acknowledging both the strengths in the company’s performance and the challenges it may face in the future.

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