How Analysts Reacted to Tiffany’s Q2 Earnings Beat

Analysts maintain a ‘buy’ rating, raise target price

Most of the analysts covering Tiffany (TIF) stock are maintaining their “buy” ratings following the company’s fiscal second-quarter earnings. Two analysts also raised their target prices for TIF stock. KeyBanc raised its target price to $150 from $140 and maintained its “overweight” rating. Credit Suisse increased its target price to $146 from $142 and kept an “outperform” rating.

How Analysts Reacted to Tiffany’s Q2 Earnings Beat

Tiffany has impressed with its financial performance in the first half of fiscal 2018. Its top line has grown at a healthy rate (up 13% in the first half of fiscal 2018), driven by higher unit volumes. Lower rough diamond acquisition costs, a lower effective tax rate, and share repurchases led Tiffany to report robust growth (up 39.2%) in its bottom line during the first half of the fiscal year.

While the company is expected to grow its sales and earnings at a healthy rate in the second half of 2018, its high valuation could restrict the upside of the stock.

Ratings and target price summary

Among the 28 analysts providing recommendations for Tiffany stock, 15 of them have a “buy” rating, 12 suggest a “hold,” and one is recommending a “sell.” Analysts have a target price of $140.96 per share on Tiffany stock, which indicates a potential upside of 7.5% based on its closing price of $131.07 on August 28.

In comparison, analysts are recommending a “hold” for Signet Jewelers (SIG) stock.