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Barrington Initiates On Tiffany's, Weighs In On Growth Potential And Valuation

Luke Jacobi

Barrington Research initiated coverage of luxury jewelry producer Tiffany (NYSE: TIF) at Market Perform.

Regarding new offerings, Analyst Kristine Koerber writes, “This fall, management will introduce new product designs, with an emphasis on the fashion category. The new products should help elevate the brand through an upward migration of price-points and an expanded assortment of fashionable products featuring gold and colored stone jewelry. There will be less focus on silver jewelry and the aspirational customer.”

Regarding financials, Koerber predicts mid to high single-digit sales growth, coupled with operating margins of 21 percent adding 10 to 15 percent to the bottom line.

Barrington did not give a price target, but with shares trading at 23.3 times earnings, Koerber writes, “We recommend waiting for a better entry point as upside is likely limited.”

Shares of Tiffany were last trading at $99.65, unchanged in Monday’s pre-market trading.

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