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Macquarie On Tiffany: 'Maintain...Will You?'

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In a report published Thursday, Macquarie analyst Laurent Vasilescu maintained an Outperform rating on Tiffany & Co (NYSE: TIF), with a price target of $98, after the company reported robust first quarter results.

Tiffany reported its results ahead of expectations, while maintaining full year EPS guidance of $4.20.

Vasilescu believes that the company's stock would be driven in the long term by initiatives to enhance shopping experience and "the extension of new product categories as well as geographies." However, the current year could be a "choppy" one for Tiffany due to currency impacts.

The company reported lower foreign tourism spend in the US in the first quarter. "The tourism factor will be a prolonged headwind until at least the back half of FY15," Vasilescu pointed out.

Tiffany's management has noted softness in Hong Kong and Macau owing to Chinese tourists travelling elsewhere. Japan witnessed stabilization driven by sales support from foreign tourists, especially the Chinese.

Referring to Europe, the Macquarie report mentioned, "There is clearly a lot of opportunity with new stores opening up going forward. Strength is coming from local customers as well as tourists. These tourists might be Chinese tourists who are benefiting from the weakened Euro."

Tiffany is poised to benefit from lower input costs. The company indicated that the benefits could "taper" in the second half of this year.

The EPS estimates for FY15 and FY165 have been raised from $3.99 to $4.17 and from $4.59 to $4.67, respectively.

Latest Ratings for TIF

Sep 2017Goldman SachsDowngradesBuyNeutral
Jul 2017NeedhamInitiates Coverage OnHold
May 2017Goldman SachsUpgradesNeutralBuy

View More Analyst Ratings for TIF
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Posted-In: MacquarieAnalyst Color Reiteration Analyst Ratings


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