Here's Why Tiffany & Co. Still A Dominant Luxury Brand

Oppenheimer issued a report on Tiffany & Co. (NYSE: TIF). Oppenheimer maintained its Outperform rating and lowered its price target from $100 to $98.

Analyst Brian Nagel and Dan Farrell wrote, "The company represents a well-known and dominant luxury brand with still significant new unit growth prospects across the globe... In the nearer term we are concerned that the combination of persistent internal and macro-oriented headwinds and seemingly optimistic management guidance and Street forecasts will weigh upon the ability of TIF to deliver sales and EPS upside as 2015 progresses.

"History suggests that we have yet to witness the full extent of the potential impact of a recent strengthening in the US dollar upon foreign tourism spending in key domestic markets. Already peak operating margins imply limited wiggle room for TIF should sales in the US or elsewhere remain sluggish."

Oppenheimer has five key factors as positive catalysts for Tiffany & Co:

• 1. Compelling new unit growth prospects in the US and overseas in up-and-coming consumer markets across the globe

• 2. Long-Standing and improving brand recognition amongst luxury shoppers

• 3. Superior Pricing Power: This should allow Tiffany to effectively pass along higher input costs to consumers.

• 4. Potential for Continued New Product Introductions: This should help increase sales at the more fashion-oriented end of the product line and to drive better margins.

• 5. Solid Balance Sheet and Ample Cash Flow: This should allow Tiffany to return excess capital to shareholders.

Shares of Tiffany & Co. recently traded at $86.02, down 0.31 percent.

Latest Ratings for TIF

Mar 2015	Atlantic Equities	Upgrades	Neutral	Overweight
Jan 2015	Wells Fargo	Upgrades	Market Perform	Outperform
Jan 2015	Jefferies	Maintains		Hold

View More Analyst Ratings for TIF
View the Latest Analyst Ratings

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