UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Tiffany & Co. on Solid Results Given Sales and Margin Upside

In a report published Wednesday, Citigroup analyst Oliver Chen reiterated a Neutral rating on

, and raised the price target from $88.00 to $100.00. In the report, Citigroup noted, “TIF executed on high quality EPS given better sales (+7%) and gross margins (+255bps) & we are particularly impressed with pricing and slight unit growth in Americas given fashion product. Also, wealthy customers are spending likely given a combination of better product, S&P500 (YTD +26.7%), housing wealth effects, focused marketing and strength in higher priced Atlas gold product. Other bright spots: Asia, improved product costs, and callouts of Atlas and Ziegfeld, which have been a driver in fashion jewelry sales and have responded well to additional marketing. We are incrementally encouraged but Neutral rated on TIF given valuation and our general holiday cautions. As such, we are raising our EPS estimates. We are increasing our price target to $100 on 22x 2015 EPS this implies a +14% stock upside.” Tiffany & Co. closed on Tuesday at $88.02.