The stock added as much as 11%, the most since May 2016, after Italian daily Il Sole 24 Ore said KKR and Bain Capital are among private-equity funds that could be studying a dossier on Pandora. Sole, which didn’t cite anyone for its reporting, said the jewellery maker is a “perfect target” for buyout funds.

Before Tuesday, Pandora shares were down more than 60% from a May 2016 peak as the bracelet maker has battled weak retail sales in the US, competition from cheap imports in China and a phalanx of hedge funds betting against it.

The market value of Pandora is now roughly US$7 billion compared with a 2016 peak of US$18 billion. The stock is currently trading at a price-to-earnings ratio of 8.2. That’s the lowest among a peer group of nine international jewellery companies, which have an average PE ratio of 15 (including Pandora’s), according to data compiled by Bloomberg.

Johan Melchior, a Pandora spokesman, said he didn’t immediately have any comment when contacted by phone.