UPDATE: Bank of America Downgrades Tiffany & Co to Neutral on Low-End Market Challenges
Bank of America reduced its rating on Tiffany & Co (NYSE: TIF) from Buy to Neutral and lowered its price objective from $68 to $63.
Bank of America commented, "We are downgrading Tiffany to Neutral from Buy as we see less upside to the stock given the challenges that its customer base is facing. 3Q gross margin decreased significantly and we expect it be down again in 4Q due to a mix shift towards less profitable products. The company's 2012 guidance (revised lower for the third time) reflects a 4Q pick-up in sales based on easier comparisons, which we view as risky against a difficult macro backdrop. Tiffany's wealthiest customers positively surprised in 3Q but we think there is risk to this trend in 4Q given the uncertainty around the fiscal cliff."
Tiffany & Co closed at $59.80 on Thursday.
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