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UPDATE: Credit Suisse Reiterates On Tiffany & Co. On Increasing APAC Concerns

Dwight Einhorn

In a report published Wednesday, Credit Suisse analyst Christian Buss reiterated an Outperform rating on Tiffany & Co. (NYSE: TIF), but lowered the price target from $106.00 to $104.00.

In the report, Credit Suisse noted, “Given increasingly cautious commentary from global luxury brands on demand drivers in the Asia-Pacific region, we are taking a more conservative stance on estimates over the next 12 months. With APAC generating 25% of revenue and contributing over 30% of operating profit (our estimate is for APAC margins approaching 30%), any slowdown in the region could partially offset expected benefits from gold/silver product elevation and North American operational improvements. We lower our APAC comp assumptions from 7% for the balance of this year to 5%, and we lower full year revenue and EPS estimates to $4,348M and $4.24 from $4,360M and $4.28 a result. We lower our target price from $106 to $104.”

Tiffany & Co. closed on Tuesday at $99.55.

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