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Jesup & Lamont Initiates Coverage on Tiffany & Co. (TIF) with a Hold; Looking For Entry Point Around $38-39

November 12, 2009 9:40 AM EST
TIF Hot Sheet
Rating Summary:
    5 Buy, 9 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Jesup & Lamont initiates coverage on Tiffany & Co. (NYSE: TIF) with a Hold.

Jesup analyst says, "We believe that TIF’s performance continues to be hurt by the luxury market slowdown. However, we think that TIF will be one of the winners long term given its highly respected brand and global presence. We believe that Tiffany is in a good position to gain market share as the luxury sector improves and demand shifts back to more classic styles. The U.S. Jewelers Board of Trade indicated that 1,587 jewelry stores have closed so far this year in the U.S., leaving just over 22,000. Some of this business may just go away, but eventually the rest will be up for grabs."

"We expect that 2009 EPS should be flat for this year but improved next year. We hear through industry sources and channel checks that sales of TIF’s Keys Collection are exceeding internal expectations. We also believe that TIF’s bridal business has started to stabilize as a result of its ad campaign to highlight the affordability of a Tiffany engagement ring. TIF reports 3Q09 results on November 25th...Even though 4Q comparisons are very easy, we would wait for a lower entry point in order to get more constructive (around $38 to $39 per share). We are projecting a 17% increase in EPS in 2010 and 2011."

To see more analyst ratings on TIF Click Here.

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