Pandora bracelet from the PANDORA concept store.
Franziska Krug | German Selection | Getty Images
PandoraThe world’s biggest jeweler fell nearly 7% after analysts warned it was downgrading it from buy to hold as it grappled with volatile silver prices.
“The combination of a pressured consumer and higher silver means the business is caught between a rock and a hard place,” Jefferies analysts said in a note on Tuesday.
“The most dangerous issue will be a lingering hesitancy to engage in the name given the silver price swings. This means that investor participation will be slow to return, despite lower silver and a lift in stocks on mechanical earnings momentum,” the note added.
Shares of Pandora fell 6.7% in mid-day trading after two days of gains. Shares are down 46% in 2025 and are down 26% year-to-date.
Pandora shares have fallen sharply in the past year, while silver has rallied.
In January, Pandora shortens its input guide and warned of weakening consumer sentiment in the US
The real culprit, however, is the price silverJeffery said.
“With silver jumping right now, we don’t want to endorse an active offer because of the exceptional situation and volatile returns,” the analyst said. “The challenges of the past few months mean that even in a world where silver prices are normal, PNDORA remains significantly cheaper than it was a year ago.”
When it matters selling silver In recent days, prices remain roughly three times higher than a year ago, which means 60% lower profits in 2027, according to the Jefferies model.
Analysts lowered their price target for the stock to 530 Danish kroner ($84) from 850 kroner.
“We doubt that switching to silver plating or stainless steel will act as a panacea, given the complexity of manufacturing and the potential deterioration of the customer proposition,” they added.
On Friday, silver had its worst post-presidential day since 1980 Donald Trump announced Kevin Warsh he was his nominee to be the next chairman of the Federal Reserve System, easing fears about central bank independence that fueled the pursuit of safe-haven assets such as metals.
While rising input costs are squeezing Pandora’s margins on the one hand, the worsening macroeconomic backdrop is affecting it on the other. The company’s core demographic, lower-income customers, are enduring so-called cost increases. “K-shaped economy”.
To cope with the rising cost of income, Pandora raised prices by about 14%it hurt customer relationships, Jefferies said.
In January, analysts at Citi downgraded Pandora shares to Neutral, citing slowing sales and extreme silver inflation.
“Near-term visibility is significantly reduced due to the volatile macro environment in the US and Europe (~80% of sales) and potential brand and jewelry consumer fatigue,” they said.
Pandora reports full-year results on Thursday.