Jewelry retailer Tiffany & Co. ( TIF ) saw its coverage initiated on Thursday with a "Buy" rating by analysts at Deutsche Bank.
The analyst also set a $58 price target on TIF shares, which had closed at $51.14 on Wednesday.
A Deutsche Bank analyst commented that "We believe Tiffany fits well within our luxury sector view: as a leading brand with a strong heritage and distribution, strong balance sheet, proactive approach to costs, and strong management, Tiffany has not only weathered the past 18-24 months well but is also set to benefit from the ongoing macroeconomic improvement, market share gains from US capacity withdrawal, and growth opportunities from increased internationalization."
Tiffany shares rose 24 cents, or +0.5%, in premarket trading Thursday.
The Bottom Line
The company has a dividend yield of 1.56%, based on last night's closing stock price of $51.14. The stock has technical support in the $45 price area. If the shares can continue to move higher, we see overhead resistance around the all-time highs of $52-$53. We would remain on the sidelines for now.
Tiffany & Co. ( TIF ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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