On Monday, Pandora (OTC:PANDY) A/S (PNDORA:DC) (OTC: PANDY) saw its price target increased by Jefferies to DKK1,150.00 from DKK950.00, while the firm retained a Hold rating on the stock. The adjustment comes in anticipation of the company's first-quarter results, which are expected to be revealed on May 2, 2023. The analyst anticipates Pandora will continue to exhibit strong like-for-like (LFL) sales growth, with improved gross margins (GM). However, this may be somewhat offset by increased operational expenses (opex) and interest costs, resulting in earnings per share (EPS) that could fall marginally below consensus estimates.
Pandora, which experienced a favorable position as a 'trading-down winner' in 2023, faces the challenge of demonstrating its ability to handle more difficult comparative figures in the second half of the year. The analyst suggests that a clearer understanding of the company's strategy to navigate these tougher comparisons is necessary to argue for any potential upside in the stock's value.
The company's upcoming launch of the new Essence range, which is scheduled for late in the second quarter, remains a variable with an uncertain impact on Pandora's financial performance. The market is looking for indicators that could influence the stock's trajectory.
The analyst's remarks underscore the need for evidence of Pandora's capability to sustain its momentum into the latter half of the year. Investors and stakeholders are advised to watch for the company's first-quarter results and the subsequent launch of the Essence collection to assess Pandora's market position and future prospects.
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