Pandora shares are closing near attractive entry levels for a medium term horizon. Investors could regard the decline over the past weeks as a buying opportunity.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at DKK 626.5 DKK in weekly data.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Historically, the company has been releasing figures that are above expectations.
● Its low valuation, with P/E ratio at 10.8 and 9.4 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.
● This company will be of major interest to investors in search of a high dividend stock.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● Below the resistance at 747 DKK, the stock shows a negative configuration when looking looking at the weekly chart.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
Pandora A/S specializes in the design, manufacturing and marketing of jewelry and related items. Net sales break down by product family as follows:
- charms and carriers (78%);
- other (22%): rings, necklaces, pendants, earrings, chains and diamonds.
At the end of 2023, the group had 6,686 points of sale (of which 2,651 concept stores) worldwide.
Net sales are distributed geographically as follows: Denmark (0.1%), the United States (29.9%), the United Kingdom (14.4%), Italy (9.7%), Germany (4.9%), Australia (4.8%), France (4.5%), China (2.8%) and other (28.9%).