UPDATE: Barclays Reiterates Tiffany & Co. at Overweight Ahead of Q3 Earnings
Barclays maintained its Overweight rating and $75 price target on Tiffany & Co. (NYSE: TIF) ahead of earnings on November 29.
Barclays said, "We are looking forward to hearing more detail on trends in the fine jewelry category - both in the U.S. and in various geographic regions. We will also focus on expectations for cost of goods trends, specifically commodity costs and any expectations for a benefit from easy compares in 2013. Finally, we expect to hear about recent merchandising initiatives, special offerings for Holiday, and marketing plans. Trading at 14.8x our 2013 EPS estimate and representing a discount to its global luxury peer group, we continue to believe that the risk/reward ratio is very compelling at these levels. We believe high demand exists for the brand domestically and internationally, and potential for square footage expansion continues to exist."
Tiffany & Co. closed at $62.63 on Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.