Overview
BofA Securities has upgraded Pandora to a "buy" rating and set a new price objective of 790 Danish crowns, which the broker calculates as about 15% potential upside to the share price. The note frames the upgrade as a reflection of the view that Pandora is "past the worst" after a difficult 18 months, and that a clearer catalyst path is emerging as the primary pressures fade and like-for-like (LFL) sales stabilize.
Analyst revisions and valuation
In its updated model, BofA raised its 2026-28 EBIT estimates for Pandora by 6%, bringing those forecasts to 35% and positioning the brokerage between 1% and 7% above Visible Alpha consensus for the period. The firm described the company as "entering the early stages of the EPS cycle inflection," a dynamic that it says has already supported a re-rating to roughly 14 to 15 times 12-24 month forward consensus price-to-earnings following Pandora's first-quarter 2026 beat.
BofA pointed to previous inflection episodes - in 2011 and 2018-19 - where similar turns were followed by further multiple expansion accompanied by earnings upgrades. The note stated that the current valuation does not appear demanding when applied to 'trough' earnings. The broker's 790 DKK objective implies a valuation equivalent to 14 times recovered 2030 earnings, discounted at the weighted average cost of capital, as CEO Berta de Pablos-Barbier works to rebuild brand momentum and market credibility amid cautious broker and investor sentiment.
Sales momentum and regional performance
BofA modeled second-quarter 2026 like-for-like sales as flat, which it interprets as the second consecutive quarter of stabilization. Regionally, Latin America reported 10% growth in the quarter and Asia-Pacific grew 9%, while Europe, the Middle East and Africa were broadly stable. The United States declined 1.5% in the same quarter; BofA described that US result as marking a trough for Pandora, noting jewelry sales picked up in June driven in part by low- and middle-income consumers according to BofA's data.
The brokerage emphasized that sequential volume improvement is the key driver behind the stabilization narrative. BofA highlighted upcoming product launches expected in fourth-quarter 2026 and first-quarter 2027, coupled with a planned marketing push, as further support for a positive inflection in results. The firm said that flat first-half like-for-like growth would allow Pandora to narrow its guided LFL range of "0% to -3%" toward the top end.
Margins, costs and other model considerations
On the cost side, BofA noted that silver was trading around $57 an ounce at the time of the note, below the $82 per ounce assumption Pandora used when setting its 2026-27 guidance and also down from a January peak. The brokerage modeled 650 basis points of year-over-year metal cost pressure in 2027. It also raised its estimate for a foreign exchange tailwind, now projecting a 70 basis point benefit.
BofA said potential U.S. tariff refunds that Pandora has applied for would represent incremental upside that is not currently factored into its estimates. The firm also stated it is now 30 to 210 basis points ahead of consensus gross margin estimates for 2026-28, describing that divergence as the first time in more than a year it has identified "immediate upside."
Income rating adjustment
Alongside the upgrade, BofA changed Pandora's income rating to "same/lower 8."
Conclusion
BofA's move positions Pandora as a candidate for multiple expansion if stabilization continues and earnings revisions follow. The broker's upgrades to medium-term EBIT and gross-margin assumptions, the modeling of metal-cost dynamics and the identification of potential upside from tariff refunds underpin its more constructive stance. Key near-term catalysts cited by the firm include sequential volume improvement, upcoming product introductions in late 2026 and early 2027, and intensified marketing activity.