UPDATE: Canaccord Genuity Cuts PT to $65 on Tiffany Following Q3 Miss

Canaccord Genuity reiterated its Buy rating on Tiffany

but reduced its price target from $72 to $65. Canaccord Genuity commented, "TIF gross margin declined 375bps yr./yr. versus our 220bps estimate. Margins came under pressure as a result of higher precious metals and diamond costs, a shift in mix to lower-margin product, and reduced leverage on fixed costs. The SG&A expense rate increased 85bps yr./yr. due to higher store occupancy and marketing costs. Items below the EBIT line resulted in $0.04 of downside to our estimate. We continue to view TIF as a top-notch global luxury brand and believe weakness following today's release presents a long-term buying opportunity." Tiffany closed at $63.73 on Wednesday.