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Cannaccord Lifts PT on Tiffany (TIF) to $95; Comps, Gross Margin Drive Solid Q2 Results

August 27, 2014 12:32 PM EDT
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Price: $131.46 --0%

Rating Summary:
    5 Buy, 31 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Cannaccord Genuity boosts its price target on Tiffany & Co. (NYSE: TIF) from $85 to $95 and maintains a Hold rating on the stock following Q2 results.

Analyst Laura Champine commented: For the second straight quarter, TIF handily beat bottom-line expectations. EPS of $0.96 was $0.13 above our estimate and $0.11 ahead of consensus. Consolidated SSS increased 3% on top of +5%, versus our estimate of +2% and the consensus forecast +4%. The beat was driven by gross margin which expanded 247bps yr./yr. in the quarter. We had projected a 7bps decline as the company was lapping a more difficult yr./yr. margin comparison. Price increases and product cost deflation have been margin tailwinds for over a year now. A higher tax rate reduced the EPS upside to our estimate by a penny. We are raising our FY14 EPS estimate by $0.20 to $4.44 versus prior consensus of $4.29. We don’t think there is much room for multiple expansion, however, with TIF trading at 20x our C2015 EPS estimate and 11x C2015E EV/EBITDA.

For an analyst ratings summary and ratings history on Tiffany & Co. click here. For more ratings news on Tiffany & Co. click here.

Tiffany & Co. closed at $100.77 yesterday.



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