Sotheby's Is Shaping Up For A Strong Fall: Get Ready For The Taubman Collection

• In a report published Tuesday, Barrington Research analyst Kristine Koerber reiterates an Outperform rating and $50 price target on shares of Sothebys BID
• The expert notes that, “demand is holding up [and the] fall auction supply [is] shaping up nicely.”
• Shares of Sothebys are still down almost 2 percent on Tuesday trading.

According to the research note, the U.S. high‐end art market seems to be holding up well, even in spite of the recent volatility seen in financial markets.

Moreover, concerns about Hong Kong auctions, scheduled to kick off on October 3, were somewhat soothed by the results seen in last week’s Asian auctions in New York City, where the company managed to sell $27.4 million in items, getting close to the higher end of its guidance.

While the current economic situation in China and the devaluation of the Yuan cannot be completely disregarded, Barrington highlights that this year’s Hong Kong auction supply widely surpasses last year’s levels.

In addition, Koerber notes, the Fall auction supply also looks quite strong, after the auctioneer won a few major consignments for the period, including the A. Alfred Taubman collection, which comprises more than 500 pieces of work (from renowned artists like Picassode Kooning and Modigliani), valued above $500 million.

Disclosure: Javier Hasse holds no stakes in any of the securities mentioned above.