Tiffany & Co. (TIF) Numbers Lifted at Nomura on Strong Q1

Nomura Securities analyst Robert Drbul raised estimates and his price target on Buy-rated Tiffany & Co. (NYSE: TIF) to $110.00 (from $100.00) following strong Q1 results.

Drbul commented, "Total sales in the quarter increased 13% YoY to $1bn, or 15% in constant currency. Gross margin expanded 200bps to 58.2% in 1Q, driven by favorable product costs and price increases across geographies and regions, as well as sales leverage on fixed costs resulting from the increase in global net sales, particularly in Japan. The company reported growth across all categories, with continued strength in Statement, Fine, and Solitaire jewellery at mid-higher price points. We expect a 7% constant-currency comp increase for 2014 including 7% in the US, 3% in Europe, and 10% in APAC. We raise our target price to $110 from $100 given the broad-based strength in sales as well as the company’s ability to drive leverage."

The firm raised FY14E EPS from $4.15 to $4.25; FY15E EPS from $4.70 to $4.80.

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 $96.30 yesterday.

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