JPM foresees price hikes from luxury names, downgrades Pandora

J.P.Morgan expects price hikes to be the likeliest way for luxury companies to offset tariff pressures, and downgrades Pandora PNDORA.CO due to its high U.S. exposure and possibly limited pricing power

It estimates brands would need an average price increase of 8-12% in the U.S. to mitigate the impact at EBIT level

It says jeweller Pandora presents "one of the trickiest" set-ups, with one of the highest U.S. exposures at more than 30% of its sales, cutting the stock to "neutral" from "overweight"

Pandora might also be one of the companies with the lowest pricing power to offset the duties, JPM adds, as it is already looking for measures to offset recent silver inflation

Separately, Bernstein starts Pandora with "underperform", expecting its organic growth to slow down due to brand perception, category expansion, pricing, and geographical mix

The broker adds that mitigating tariff impacts will be challenging "given the vertical integration of the business and the pricing challenges facing the business"

Pandora's shares are down around 1% at 1102 GMT, after they lost 15% over the past three trading sessions since U.S. announced tariffs on Thailand, its only production hub