Goldman Sachs upgrades Tiffany (NYSE:TIF) to Buy from Neutral on a positive view of the company's positioning in luxury.
The investment firm thinks Tiffany will benefit as international tourist spending picks up and high-end U.S. consumer spending accelerates. Improvement in inventory turnover is also seen unlocking some free cash flow.
The new price target on Tiffany from GS is $107 to rep 15% upside potential.
Sherwin-Williams (SHW +0.6%) is a top five long position of Jana Partners, according to Bloomberg. There was a volume spike on Sherwin-Williams after the report broke.
An April update from the activist hedge fund indicates stakes in Liberty Broadband (LBRDA, LBRDK), Tiffany (TIF -0.9%), Universal Health and Whole Foods Market (WFM -0.1%) as the other top five holdings. It's not clear yet if the Whole Foods position by Jana has been increased.
Jefferies backs up its TIF)%3A+Notes+From+Management+Meeting+-+Jefferies/12740233.html" target="_blank">Buy rating on Tiffany (TIF) after meeting with management.
The firm cites the potential for margin improvement and the launch of the new HardWear line in late April as two reasons to stay constructive on the retailer.
Wells Fargo also thinks that the Lady Gaga line could perform well. "Notably, the company’s partnership with Lady Gaga… seems to have generated some excitement and could drive a solid response to the new 'HardWear' collection launching next month," notes WF.
Shares of Tiffany +0.24% premarket to $94.41 vs. a 52-week trading range of $56.99 to $97.29.
A video highlighting the huge markups on diamonds is starting to make the media rounds. The YouTube piece, produced by the founder of the I Want What It's Worth website, claims that high-end retailers are selling the identifical simple round cut solitaire diamonds as those found in Costco (COST +0.2%) - at significantly higher prices.
Tiffany (NYSE:TIF) +253% markup, Cartier (OTCPK:CFRUY) +276% markup, Van Cleef +314% markup and Harry Winston ([[SWGAY,OTCPK:SWGAF) +336% markup were the retailers examined in the video.
The development could be seen as positive for Blue Nile (NASDAQ:NILE) if it continues to draw attention.
Tiffany (NYSE:TIF) reports better comparables sales in Europe, Asia Pacific and the Americas than expected for Q4. Total revenue was up 2% on a constant-currency basis.
Gross margin improved 110 bps to 64.1% of sales during the quarter as favorable product input costs factored in.
SG&A expenses were 6% higher in Q4 and were 41.5% of sales vs. 38.5% last year.
The company paid in effective tax rate of 36.0% vs. 34.4% a year ago.
Tiffaney ended the quarter with a merchandise inventory position down 3% Y/Y.
Looking ahead, Tiffany sees sales increasing at a low single-digit rate and EPS increasing by a high-single-digit pace vs. +3% consensus. Net cash of $700M and free cash flow of $450M are also expected.