UPDATE: Canaccord Raises PT on Tiffany & Co. Following Q4 EPS Report
In a report published Friday, Canaccord Genuity analyst Laura Champine reiterated a Sell rating on Tiffany & Co. (NYSE: TIF), and slightly raised the price target from $52.00 to $53.00.
In the report, Champine noted, “TIF reported Q4 EPS of $1.40, $0.05 ahead of our estimate and consensus. SSS were flat yr./yr. on top of +5%, matching us and the consensus forecast. The company generated 65bps of SG&A expense leverage, which was better than our estimate of a 51bps increase. This was partially offset by a gross margin contraction of 126bps as a result of continued weakness in lower-priced, higher-margin silver jewelry, higher precious metal and diamond costs, and reduced leverage on fixed costs. We had modeled for a 79bps decline. We do not believe the silver business has regained any momentum in the current quarter and expect margin pressure to persist through Q1. We are reducing our Q1 EPS estimate by $0.09 to $0.53.”
Tiffany & Co. closed on Thursday at $67.91.
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