Tiffany’s Target, Estimates Lowered at Goldman Sachs (TIF)

Jewelry maker Tiffany & Co. (TIF) on Friday caught some bearish commentary from analysts at Goldman Sachs following the company’s disappointing earnings report.

The firm maintained its “Neutral” rating on TIF but cut its price target from $70 to $64. That new target suggests an 11% upside to the stock’s Thursday closing price of $57.59.

A Goldman analyst commented, “TIF reported a below plan 1Q as original guidance failed to adequately incorporate tough comparisons (particularly in the Americas). The weakness was broad based, with little variation across price strata. Management attributed the softness to constrained spending from financial sector employees, a highly promotional environment, and resistance to entry level product price increases. Tourism at the NYC flagship was flat yoy, with increased Asian tourism offsetting declines from Europe. Given the disappointing start to the year, management lowered FY12 EPS guidance to $3.70-$3.80 from prior $3.95-$4.05. As such, we are lowering our FY12/FY13/FY14 EPS Estimates to $3.75/$4.40/$5.05 from $4.00/$4.65/$5.33 prior.”

Tiffany shares posted small losses in premarket trading Friday.

The Bottom Line
Shares of Tiffany & Co. (TIF) have a 2.22% dividend yield, based on last night’s closing stock price of $57.59. The stock has technical support in the $51-$55 price area. If the shares can firm up, we see overhead resistance around the $62-$65 price levels.

Tiffany & Co. (TIF) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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