Pandora bracelet from PANDORA concept store.
Franziska Krug | German Select | Getty Images
Pandora, the world’s largest jeweler, fell about 7% after analysts warned that it would struggle amid volatility in silver prices and downgraded the company’s rating from “buy” to “hold.”
“The combination of increased consumer pressure and rising silver prices means the business is in trouble,” Jefferies analysts said in a note Tuesday.
“The most pernicious issue will be a long-term reluctance to engage with the name given the volatility of silver prices. This means that even if silver prices fall and stock prices rise on mechanical profit momentum, investor engagement will be slow to return,” the note added.
Pandora shares fell 6.7% in afternoon trading after two days of gains. The stock is down 46% in 2025 and 26% year-to-date.
While Pandora’s stock price has fallen sharply over the past year, silver has risen.
Pandora lowered its earnings outlook in January and warned of deteriorating U.S. consumer sentiment.
But the real culprit is the price. silversaid Jeffries.
“Given the current surge in silver prices, we are reluctant to support aggressive recommendations subject to special circumstances or unstable inputs,” the analyst said. “The challenges of recent months mean that even in a world with more normal silver prices, PNDORA remains significantly cheaper than it was a year ago.”
Despite the big drop in silver in recent days, the price is still nearly three times higher than it was a year ago, and Jefferies’ model predicts a 60% decline in profits in 2027.
Analysts lowered their price target for the stock to 530 Danish kroner ($84) from 850 kroner.
“We do not believe that switching to silver-plated or stainless steel will be a panacea, given the increased manufacturing complexity and potentially reduced customer delivery,” they added.
Silver prices suffered their worst day since 1980 on Friday after President Donald Trump announced Kevin Warsh as his nominee to become the next Federal Reserve chairman, allaying concerns about the central bank’s independence that had encouraged investment in safe-haven assets such as metals.
While rising input costs are squeezing Pandora’s profits from one side, a deteriorating macroeconomic backdrop is hitting from the other. The company’s core demographic, low-income consumers, are struggling to cope with rising costs in what has been dubbed the “K-shaped economy.”
To counter rising input costs, Pandora raised prices by about 14%, which hurt consumer engagement, Jefferies said.
Citi analysts also downgraded Pandora’s stock to “neutral” in January, citing slowing sales momentum and extreme silver inflation.
“Near-term visibility has declined significantly, further exacerbated by the volatile macro environment in the US and Europe (about 80% of sales) and potential brand and jewelery consumer fatigue,” they said.
Pandora is scheduled to report full-year results on Thursday.
