Pandora cuts sales guidance and pauses buybacks, but the stock is still rising

Shares of Danish jewellery giant Pandora rose 5.6% in trading in Copenhagen on Thursday and continued higher after early trading on Friday. Despite weak guidance for 2026 and the suspension of share buybacks, the stock was supported by falling silver prices, Bloomberg reported. A day earlier, Pandora announced plans to partially shift away from the precious metal in favor of platinum-plated jewelry. On Friday, several analysts revised their target price on the company’s shares.

Pandora shares rose 5.6% during trading in Copenhagen on Thursday, February 5. After the opening bell on Friday, the gains have continued, the stock increasing 6% to DKK573.80 per share (about $90.60). Even so, the shares remain about 20% lower year to date.

A drop in silver prices has outweighed investor concerns about the company’s outlook, according to Bloomberg. A day earlier, Pandora announced it would begin producing jewelry with platinum plating, reducing dependence on volatile silver prices that have been pressuring margins, according to Yahoo Finance.

Pandora expects sales growth to slow in 2026, forecasting organic growth of no more than 2% in the best case and a decline of up to 1% otherwise, Bloomberg reported. That could mark the first drop in Pandora sales since the pandemic. Analysts had expected growth of 3.9%.

Revenue in the fourth quarter increased 4% year over year to DKK11.86 billion, while EBIT totaled DKK3.98 billion, with a margin of 33.5%.

“The guidance for 2026 is not at all where I am pleased to be and it’s not at all where I want to be in the future,” CEO Berta De Pablos-Barbier said, as quoted by Bloomberg. “But it’s about taking a year to stabilize, course correct and change what needs to be changed.”

Pandora also said it would temporarily suspend share buybacks.

Current gold and silver prices, without mitigation measures, could reduce EBIT margins by 11 percentage points, and a shift to platinum is expected to partially offset that effect, writes the Wall Street Journal. Pandora expects EBIT margins of 21-22% in 2026 and at least 12% in 2027, versus 23.5% in 2025.

The surge in prices for gold, silver, and other metals has pushed companies across industries to reassess raw-material sourcing and, in some cases, look for substitutes. Even after recent declines, silver prices have more than doubled over the last year, with a troy ounce now worth more than a barrel of oil in futures markets, according to the Journal. Gold prices have also retreated from recent highs but remain well above year-ago levels.

Bloomberg Intelligence analysts note that Pandora’s costs could rise during the transition to platinum products. At the same time, the U.S. market is slowing and silver prices remain elevated.

Earlier this week, Jefferies downgraded Pandora to “hold” from “buy,” citing weaker consumer demand and elevated silver prices, which has left the business “caught between a rock and a hard place.”

On Friday, UBS cut its target price to DKK480 from DKK555 per share and reiterated its “sell” rating. JPMorgan lowered its target share price to DKK555 from DKK765 while maintaining a “neutral” rating. Bernstein reduced its target to DKK370 from DKK430 per share and reiterated an “underperform” rating. Jyske Bank cut its target to DKK790 from DKK880 per share while maintaining a “buy” rating. SEB upgraded its view, raising its target share price to DKK550 from DKK500 and reiterating its “hold” rating.

Only four of 17 analysts now rate the stock a "buy" versus 10 recommending "hold" and three "sell," according to MarketScreener data. The average target price of DKK637.20 per share implies about 17.7% upside to the Friday closing price.