UPDATE: Macquarie Upgrades Tiffany & Co.

Macquarie upgraded Tiffany & Co. TIF in a report issued Wednesday from Neutral to Outperform and maintained the price target of $115.

Analysts led by Laurent Vasilescu and Stephanie Wakeham noted that they "leverage insights from our global commodities team and believe the company will face tailwinds heading into the back half of 2014 leading to improved margins.

"In addition, we believe that TIF’s FCF benefits from prior investments to vertically integrate the diamond supply chain," according to the report.

The report raised the FY 201414 EPS estimate to $4.46 from $4.30 and raised the FY 2015 EPS estimate to $5.26 from $4.75.

Tiffany & Co. recently traded at $90.74, up 3.38 percent.