Bank of America Sees Gross Margin Upside Lead to Strong Beat for Tiffany & Co.

In a report published Wednesday, Bank of America analyst Lorraine Hutchinson reiterated a Buy rating and $115.00 price target on

. In the report, Bank of America noted, “Tiffany reported EPS of $0.96, above our $0.83 estimate and guidance that earnings would be ‘approximately flat' for the quarter. The beat was driven by better than expected gross margins. Worldwide constant currency comps were 3%,in line with our estimate, as strength within North America was offset by weakness internationally. Management raised its EPS outlook by $0.05, now forecasting earnings between $4.20-4.30 per share (versus our estimate of $4.25). This quarter demonstrated that Tiffany's NA store initiatives continue to work and that price increases taken earlier this year along with favorable product costs can drive strong GM. We reiterate our Buy rating.” Tiffany & Co. closed on Tuesday at $100.77.