Tiffany & Co. Share Price Jumps After Analyst Upgrade

Finance and Trade
22/12/2015 09:26

Tiffany & Co. shares rose on Tuesday after the upscale jeweler's stock was upgraded to buy from hold by investment house Jefferies. Analysts at the firm substantially raised forecasts for Tiffany's shares – to $100 from $88. In a note to clients, the firm said there was "a rare opportunity to get a high-quality company at a discount," and that Tiffany is a "powerful" and stable luxury brand that is improving its systems and supply chain. Jefferies further explained its move by saying that it forecasts higher margins and earnings per share by Tiffany in the years to come after currency exchange pressures in 2015 negatively impacted the company. In addition, tourism and foreign exchange troubles should subside in fiscal year 2017. Tiffany shares have slumped almost 32% this year, while the S&P has declined by just 2%.