UBS Upgrade of Pandora A/S
UBS Global Research upgraded Pandora A/S to a neutral rating from a more cautious stance and increased its price target to 757 Danish krone, representing a 49% uplift. The upgrade reflects improving execution under the newly appointed chief executive, with the broker noting a renewed focus on local relevance, emotional storytelling and product innovation, including the launch of platinum‑plated jewellery to mitigate commodity and foreign‑exchange headwinds.
Previously, UBS had a cautious view due to slowing earnings‑per‑share momentum, with EPS down 55% and the valuation multiple falling from 16‑times over the past year. Despite ongoing macro uncertainty and pressure on lower‑income consumers, UBS sees limited downside to the company’s fiscal 2026 guidance, which projects like‑for‑like sales ranging from a 3% decline to flat.
UBS raised its fiscal 2026‑28 EPS forecasts by 6%, 14% and 9% respectively, and lifted EBIT margin expectations by 40 basis points for FY2026, 80 basis points for FY2027 and 30 basis points for FY2028, targeting EBIT margins of 21‑22% in FY2026 and at least 12% from FY2027 onward. The broker attributes the margin improvement to cost‑of‑goods‑sold efficiencies, a smoother metal transition and easing silver price pressures.
For sales outlook, UBS upgraded the FY2026 like‑for‑like sales assumption to +1% (from –1%) ahead of company guidance and models a 2% like‑for‑like growth from FY2027 onward. After flat first‑quarter like‑for‑like sales, UBS forecasts gradual improvement with like‑for‑like growth of about 1% in the second quarter and 2% in the second half of FY2026, underpinning a 4% compound annual growth rate for sales in FY2027‑30 driven by a re‑engineered product pipeline.