Impressive Q1 performance, solid outlook
Multiple analysts raised their target price on Tiffany (TIF) stock following the company’s impressive first-quarter performance. Tiffany’s top line grew ~15%, reflecting increased customer spending and omnichannel offerings, while its bottom line gained significantly from lower tax, wider margins, and improved comps.
Tiffany raised its sales and earnings forecast for this fiscal year, boosting investors’ confidence. New design launches, continued strength in the Asia-Pacific region, omnichannel offerings, enhanced marketing, increased customer spending, and currency rates are expected to drive Tiffany’s sales in future quarters.
Meanwhile, margin expansion owing to higher sales, lower diamond acquisition costs and effective tax, and share buybacks are expected to boost its EPS growth. Analysts made the following revisions to their target prices for Tiffany stock:
- Jefferies raised it to $130 from $125.
- Cowen raised it to $140 from $110.
- Credit Suisse raised it to $142 from $120.
- KeyBanc raised it to $140 from $120.
- Susquehanna raised it to $121 from $100.
Ratings and price target summary
Of the 27 analysts covering Tiffany stock, 59.0% recommend “buy,” and 41.0% recommend “hold.” Analysts’ target price of $122.17 is 3.1% lower than its closing price of $126.05 on May 23, primarily due to its stock price surging following the company’s first-quarter earnings announcement.