Deutsche Bank analyst Alison Lygo downgraded Pandora A/S to a “hold” from “buy,” slashing its target price from DKK 1,100 to DKK 480. The move stems from a profit warning and the recent surge in silver prices, which have climbed to around $90 per ounce.

Lygo argued that Pandora’s current business model is unsustainable at this cost level. Even after cutting silver usage by a third, gross margins for fiscal 2027 could fall to about 65%, down from an earlier 80% forecast. This contrasts sharply with sell-side consensus, which still projects healthier EBIT margins.

The downgrade highlights a critical tension for the jewelry maker: its ability to offset soaring input costs. Investors now await Pandora’s February update on trading and mitigation plans, which could further sway market sentiment if the company confirms its struggle to adapt to the new cost environment.