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How Wall Street Reacted to Tiffany’s Q4 Earnings

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Analysts raised their target price

Tiffany’s (TIF) expects its earnings to resume growth in the second half of fiscal 2019, and Wall Street analysts have raised their target prices on the stock. Cowen raised its target price on Tiffany stock to $115 per share from $105. Meanwhile, Jefferies increased its target to $120 from $110.

Tiffany’s top and bottom lines are expected to remain low in the first half of fiscal 2019. However, management expects earnings to return to growth in the back half of the year, which is likely to drive high-single-digit growth in its full-year EPS.

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Tiffany’s top line is likely to take a hit from tough year-over-year comparisons in the first half of the year. Meanwhile, the strengthening US dollar and lower tourist spending could further pressure comps and, in turn, the top line. Weak sales and planned investments in growth measures, including technology and stores, are likely to hurt EPS.

Ratings and target prices

Despite near-term challenges, analysts remain positive about the company’s long-term prospects. Among the 27 analysts covering Tiffany stock, 16 say “buy” and 11 say “hold.”

Analysts have a consensus target price of $109.50 per share, which implies an upside of 6.1%, based on its closing price of $103.21 on March 22.

In comparison, the majority of analysts have a “hold” rating on rival Signet Jewelers (SIG) stock.

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