Pandora’s Profit Puzzle: Analysts Left Scratching Their Heads

Pandora A/S, the Danish jewelry giant, has just dropped its quarterly earnings, and the numbers are looking good on the surface. The company has managed to squeeze out a profit of 0.20 USD per share, a 10.07% boost in revenue to 1.08 billion USD, and has even beaten analyst expectations. But scratch beneath the surface, and you’ll find a tangled web of mixed signals.

Several analysts have taken a closer look at Pandora’s numbers and have come to a surprising conclusion: despite the positive results, the company’s stock is not as valuable as it seems. UBS has taken a bold step, reducing its target price to a paltry 830 DKK, while BNP Paribas Exane and Deutsche Bank have also lowered their targets to 1,330 DKK and 1,150 DKK, respectively. It’s a stark contrast to Jyske Bank’s optimistic “buy” rating, which still holds a target price of 1,150 DKK.

So, what’s behind this disconnect? Pandora’s CEO claims that the company has no plans to raise prices, despite the impact of US tariffs, and has not seen a significant effect on demand. But is that really the whole story? The fact remains that several analysts have taken a cautious approach, and it’s up to investors to decide whether Pandora’s profit puzzle is a sign of a solid foundation or a house of cards waiting to be toppled.

The Analysts’ Verdict

• UBS: 830 DKK (down from previous target)
• BNP Paribas Exane: 1,330 DKK (down from previous target)
• Deutsche Bank: 1,150 DKK (down from previous target)
• Jyske Bank: 1,150 DKK (maintained “buy” rating)

The question on everyone’s mind is: what’s next for Pandora? Will the company’s profit puzzle continue to confound analysts, or will it finally start to make sense? Only time will tell, but one thing is certain: investors will be watching Pandora’s every move with bated breath.