Tiffany & Co. (TIF): Reiterating Underperform Despite Improving Luxury Trends - Wells Fargo

November 16, 2016 7:24 AM EST
Get Alerts TIF Hot Sheet
Price: $79.03 --0%

Rating Summary:
    17 Buy, 17 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 28 | Down: 28 | New: 23
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Wells Fargo analyst, Ike Bucherow, reiterated his Underperform rating on shares of Tiffany & Co. (NYSE: TIF) but raised his price target to $65 from $61 noting that the outlook for TIF’s 2H has "clearly improved" over the past few months as a steady stream of “less negative” luxury data points (global luxury companies, Swiss Watch exports, Asia jewelry market, etc.) has investors more bullish on TIF’s prospects for improving comp trends for the first time in over a year.

However, he isn't ready to raise his estimate since the stock is fully reflecting an improving trend (TIF +33% from the lows vs. SPX +4%). He also points out the following causes for concern: 1) key currencies have moved lower against the USD over the past few months (weakness in JPY/GBP/EUR which represent around 30% of global mix – all down 5-8%) and 2) Donald Trump’s election victory may cause an unforeseen headwind to the business in Q4 - as TIF’s most productive location in the world (their 5th Avenue Flagship which accounts for 20% of U.S. sales) sits next to Trump Tower and is currently surrounded by meaningful disruption which could linger through the holidays (due to increased Trump security and political protesting).

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

Shares of Tiffany & Co. closed at $75.96 yesterday.

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