Tiffany & Co. (TIF) PT Raised To $110 At Nomura On 3 Points Of Expanded Opportunity

Nomura/Instinet analyst, Simeon Siegel, reiterated his Buy rating on shares of Tiffany & Co. (NYSE: TIF) and raised his price target to $110.00 (from $108.00) after the analyst performed a deep dive on the company and found 3 points of potential long-term opportunity

1. TIF has introduced and expanded on its pop-up shop strategy (and expanded its use of stores w/in department stores and ecomm/omni-channel). In FY18, two department store shop-in-shops were added in Canada/Mexico, one was added in Asia Pacific, three were added in Japan, and two were added in Europe.

2. In early 2018, TIF decided to close the diamond polishing division of Laurelton Diamond Antwerp. While Laurelton would continue to headquarter its diamond preparation activities in Antwerp (rough sourcing, sorting, and marking and sawing), cutting and polishing activities migrated to Laurelton’s other factories (Vietnam, Cambodia, Mauritius, and Botswana). And there has been a noticeable decline in wholesale sales of diamonds and the continuation of a drop in raw materials as % of
inventory, as discussed more below.

3. TIF improved its tax rate to ~21% from the prior year’s ~32%. Although mgmt. has guided a ~23% rate for FY19, we will be monitoring this through FY19. We continue to believe the company has an opportunity to optimize its tax rate, given the disparity in its reported regional taxable income vs. reported regional P&L EBIT;

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 $103.21 yesterday.

You May Also Be Interested In

• Bernstein SocGen Group Upgrades Analog Devices (ADI) to Outperform
• Morgan Stanley Upgrades Suncor Energy (SU) to Overweight
• Home Depot (HD) PT Raised to $373 at Truist Securities