UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Tiffany & Co.
In a report published Friday, Deutsche Bank reiterated its Hold rating on Tiffany & Co. (NYSE: TIF), but lowered its price target from $68.00 to $66.50.
Deutsche Bank noted, “Despite a weak environment in Asia, which has been an industry issue for the last couple of quarters, we were still disappointed with the -4% comps and we need to understand whether TIF is indeed tracking or underperforming the market relative to its level of (lower) maturity in the region. Also, after years of underperformance, silver jewellery continues to decline as aggressive price increases from the last few quarters have, for the most part, priced the brand out of its customers' reach, thus cementing a mix shift which started with the financial crisis and which sees TIF as a relatively more successful brand in the higher end. While a more elevated positioning is healthy for the brand, the P&L implications of these trends need to be evaluated. We will look for more colour on these topics when we meet with the company next week.”
Tiffany & Co. closed on Thursday at $59.80.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.