Pandora A/S (PNDORA) was the second-biggest gainer among benchmark stocks in Copenhagen today after J.P.Morgan Cazenove said the fall in the price of silver will continue to boost the shares of the Danish jewelry maker.
Pandora rose as much as 2.8 percent, the biggest gainer in the Nasdaq OMX Copenhagen 20 Index after Vestas Wind Systems A/S. Pandora gained 2.3 percent to 205.40 kroner at 11:10 a.m. in the capital, with trading volume at 36 percent of the three-month daily average.
Silver prices have dropped 30 percent since April 9. That plunge and the likelihood of sustained revenue growth will drive stock in Pandora higher, J.P. Morgan analyst Chiara Battistini wrote today in a note to clients. Battistini increased her 12-month price target, to 230 kroner from 220 kroner, and raised her profit forecast for the Glostrup, Denmark-based company.
“Thanks to the ongoing decline of raw material prices, we raise our 2014 gross margin to 71.5 percent from 69 percent,” said Battistini, who has an overweight recommendation on Pandora. The company enjoys “ongoing momentum sustaining revenue growth and strong consumer response to the new collections,” she said.
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