Deutsche Bank Maintains Hold on Tiffany & Co.

Deutsche Bank has published a research report on Tiffany & Co. (NYSE: TIF) after the company reported positive yet mixed 3Q results.

In the report, Deutsche Bank writes, "Q3 results were positive, yet showing mixed trends across the board with better-than-expected AsiaPac and Japan, still solid but decelerating US, slightly disappointing Europe. In Q4, the company is experiencing a continuation of Q3 trends, i.e. relative weakness in EU and the eastern part of the US while still very healthy AsiaPac and Japan. We have adjusted our FY12 est. with no major changes (sales at +19% on +14% comps, EPS fully diluted at $3.78 vs guidance $3.70-3.80). Both our est and Co guidance were already factoring in a slowdown in Q4, also due to a demanding comparison basis (group comps in Q4 were +9%/+8% in FY10/FY11). Our 4Q12e sees total sales at +11% on comps at +8% (US comps at +5%), sitting at the bottom of the low teens guided by the Co, and EBIT margin up by 90bps, slightly above guidance. We highlight that we are projecting also a sharp deterioration of demand in FY13 (+6% on +3% comps)."

Deutsche Bank maintains its Hold rating and $75 price target on Tiffany & Co., which closed yesterday at $67.22.