Pandora Gains as Handelsbanken Sees 2013 Boost: Copenhagen Mover
Pandora A/S (PNDORA), the Nordic region’s biggest jewelry maker, rose the most in six days in Copenhagen trading after Svenska Handelsbanken AB said investors should buy the stock because a new strategy will boost profits in 2013.
Pandora rose as much as 1.5 percent, the most since Jan. 2. The stock advanced 1.3 percent to 130.70 kroner at 12:03 p.m. in the Danish capital with trading volume at 46 percent of the three-month daily average.
Pandora raised its 2012 forecast in November after lowering pricing and swapping retailers’ old stock for better-selling products. Handelsbanken today changed its recommendation on the stock to buy from accumulate and said the changed strategy and products to be introduced this year are set to attract new customers.
“We expect an exciting 2013 as Pandora’s business gets back on the growth track,” Klaus Madsen, an analyst with Handelsbanken in Copenhagen, said in a note to clients. “We continue to find the recovery story appealing and also see scope for substantial cash distribution.”
Madsen increased his price estimate on the share to 160 kroner from 120 kroner. Before today, the average 12-month target on the stock was 125 kroner, according to nine analyst price estimates compiled by Bloomberg.
Pandora on Nov. 6 said 2012 earnings before interest, tax, depreciation and amortization as a percentage of sales will be “in the mid-20s.” The company had previously expected an Ebitda margin in the “low 20s.”
The Glostrup, Denmark-based company is scheduled to report fourth-quarter earnings on Feb. 26.
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