Mizuho Securities Remains Bullish on Tiffany & Co. (TIF) Despite Weak Holiday Sales - PT to $75
Mizuho Securities maintained a Buy rating on Tiffany & Co. (NYSE: TIF), and cut the price target to $75.00 (from $90.00), following "softer-than-expected" Holiday sales. TIF reported total Nov and Dec sales of $961mm which reflects (6)% Y/Y decline in USD. Mizuho says that the pullback provides a compelling entry point for LT investors looking toward FY16 and beyond.
Analyst Betty Chen commented, "While we have moderated our estimates and PT to $75 to reflect the softer-thanexpected Holiday sales, we believe the pullback provides a compelling entry point for LT investors as we look toward FY16 and beyond. Importantly, we note TIF continues to make progress with longer-term initiatives and believe the future set-up appears favorable given: 1) ongoing progress with product refreshes and strategic price increases that enabled normalized gross margin; 2) favorable input costs tailwinds; 3) easier organic and currency comparisons; and 4) LT growth trends in luxury jewelry market."
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Shares of Tiffany & Co. closed at $67.65 yesterday.