A Pandora Bracelet at the PANDORA Concept Store.
Franziska Krug | German Select | Getty Images
Pandora, the world’s largest jeweler, is under pressure after analysts warned that the volatile price of silver was a “pernicious problem” for the company.
The stock fell more than 9% on Tuesday after the warning from Jefferies analysts, who downgraded it from Buy to Hold. It recovered about 1.5% in Wednesday morning trading but remains down 28% year-to-date, extending 2025 losses of 46%. The company will report 2025 results on Thursday.
The analysts wrote that Pandora was “caught between a rock and a hard place” thanks to the cost of silver and a “more pressured consumer.”
Spot silver was trading 5.5% higher early Wednesday at $89.50 an ounce. It recovered from a historic sell-off last week: Friday was its worst day since 1980, after a long rally.
“The most pernicious problem will be a long-lasting hesitancy to engage in the name, given silver price moves. This means that even if silver retrenches and the stock lifts on mechanical earnings momentum, investor engagement will be slow in returning,” Jefferies said.
Pandora shares have fallen sharply over the past year, while silver has rallied.
In January, Pandora cut its earnings guidance and warned about weakening consumer sentiment in the U.S.
The real culprit, however, is the price of silver, Jefferies said.
“With silver now jumping around, we are reluctant to endorse an active recommendation subject to a special situation and volatile input,” the analyst said. “The challenges of the last few months will mean, even in a more normal silver price world, PNDORA will remain substantially cheaper than even a year ago.”
While there was a significant silver sell-off in recent days, prices remain nearly three times higher than they were a year ago, implying 60% lower profits for Pandora in 2027, according to Jefferies’ model.
The analysts cut their price target on shares to 530 Danish kroner ($84) from 850 kroner.
“We doubt a switch to silver-plating or stainless steel will act as a panacea given the added complexity of manufacturing and the potential deterioration of customer offer these imply,” they added.
On Friday, silver had its worst day since 1980 after President Donald Trump announced Kevin Warsh was his nominee to be the next Chair of the Federal Reserve, easing fears about the central bank’s independence that had been fueling a drive into safe-haven assets like metals.
While rising input costs are squeezing Pandora’s margins from one side, a deteriorating macroeconomic backdrop is hitting it from the other. The company’s core demographic, lower-income consumers, is struggling to cope with rising costs in what’s been dubbed the “K-shaped economy.”
To combat rising input costs, Pandora raised prices by about 14%, which damaged consumer engagement, Jefferies said.
Citi and Deutsche Bank analysts also downgraded Pandora shares in January to Hold or Hold-equivalent, citing slowing sales momentum and extreme silver inflation.
“Near-term visibility has diminished considerably, worsened by a volatile macro environment in the US and Europe (~80% of sales) and potential brand and jewellery consumption fatigue,” Citi said.
The Deutsche analysts said that Pandora was unlikely to be able to reduce silver usage enough to offset the metal’s rising cost. “If silver holds at $90… the shape of Pandora’s operating economics and growth algorithm need to shift substantially,” they said.
While they say traders have somewhat captured the downside, analyst estimates may be downgraded when Pandora gives more color on trading and mitigating action in its full-year results on Thursday.
