UPDATE: Deutsche Bank Reiterates Tiffany & Co. at Hold on Outlook

Deutsche Bank analyst reiterated a Hold rating and $68.50 price target on Tiffany and Co.

Deutsche Bank reported that, “With the three downgrades during 2012 to January 13 guidance, and the final fine tuning on 10 January 2013 after the Holiday sales, we see limited scope for downside surprises at this stage. Indeed, after disappointing Holiday seasonal sales on 10 January, management guided FY EPS to the low-end of its $3.20-$3.40 range versus the Street at $3.26 at the time. Both DBe and consensus (Bloomberg) are now at $3.22 Gaap and $3.21 adj. This means an FY gross margin down 190bp to 57.1% (and Q4 gross margin down 110bp, an improvement over the 240 deterioration of the 9M but still below the original expectations, due among other things to mix with silver still underperforming). EBIT should end in the $706m with a 18.4% margin down 110bp and only 80bp deterioration in Q4 on easier comps. All in all, we expect net profit to be down c 4% in the year to $ 420m, reverting to a positive development in Q4 with +3.7% yoy growth to $184m.” Shares of Tiffany & Co. closed at $68.83 on Monday.