Pandora (Sell, TP: DKK400.00) - Strong Q3 with higher guidance
Pandora provided a trading update after the close with Q3 figures significantly above consensus, driven by better than expected organic growth. Reflecting the better than expected results, Pandora now eyes 2020 results in the upper half of the previously guided range. We expect consensus EBIT before restructuring to be up 1–2% following the report as the Q3 beat is partly offset by lowered estimates for Q4. We would use any strength in the share as a selling opportunity as we believe a recovery in earnings is already discounted, as the stock is trading at a c40% premium to historical averages while the earnings risk is increasing in our view.Pandora designs, manufactures and markets jewelry made from genuine metals. Co. designs, produces and sells charms, bracelets, rings, necklaces, pendants and earrings. Co.'s products are made from gold, silver, gemstones, cultured pearls and stones and other jewelry materials. Co.'s jewelry is sold in more than 90 countries on six continents through approximately 9,900 points of sale, including more than 1,400 concept stores. Co.'s products are sold globally through such points of sale as concept stores, silver stores, gold stores, shop-in-shops and white stores.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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