Pandora Gains as Nordea Sees Gold Price Boost: Copenhagen Mover
Pandora A/S (PNDORA) rose the most in a week in Copenhagen trading after Nordea Bank AB said plunges in the price of gold and silver will boost profits at Nordic region’s biggest jewelry maker.
Pandora rose as much as 2.4 percent, the most since April 22. The stock gained 2.1 percent to 176.40 kroner at 10:32 a.m. in the Danish capital with trading volume at 9.4 percent of the three-month daily average.
Gold prices suffered last month the biggest two-day decline since 1980, tumbling 13 percent amid speculation the U.S. Federal Reserve will scale back stimulus efforts and Cyprus will sell the metal to raise cash. The drop will boost Pandora’s profits and help reduce inventory levels, Nordea said. It raised its price estimate on the shares by 16 percent.
“Pandora’s earnings are greatly affected by commodity prices,” Dan Kirk Wejse, an analyst with Nordea in Copenhagen, said in a note. “Both the silver price and the gold price have come down sharply in recent weeks and although they have recovered slightly, the development still prompts us to raise our gross margin estimates.”
Nordea raised its share price estimate to 185 kroner from 160 kroner and kept its hold recommendation “for now, but with a positive bias,” according to the note.
The Glostrup, Denmark-based is scheduled to report first- quarter earnings on May 14. Revenue may have jumped 17 percent to 1.67 billion kroner ($295 million) while net income probably advanced 1.3 percent to 342 million kroner, according to the average estimate in a Bloomberg survey of six analysts.
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