Just as someone looking to buy an engagement ring can’t go wrong with Tiffany (TIF), the luxury-retailers stock has been a must-have item for investors. The latter could be about to change, however, not the folks at Credit Suisse. Analyst Christian Buss and team explain:
Bloomberg Given increasing concerns of slowing demand trends out of [Asia Pacific], we believe that opportunities for earnings upside [at Tiffany] are more limited in 2H and 2015. With multiples now above the historical median of 20x forward P/E, we believe share-price appreciation from here will prove more limited as a result.
…we are downgrading Tiffany to Neutral and maintaining our Target Price of $112.
But even as Buss downgraded Tiffany, he had kinder words for L Brands (LB), which was upgraded to Outperform from Neutral:
[We] are upgrading LB to Outperform given potential for margin-led earnings upside over the next 6-9 months. We also raise our Target Price to $73 from $ 65…
We are adjusting our FY14 comp, revenue and EPS estimates to 2.8%, $11,306M and $3.26 from 2.9%, $11,367M, and $3.26. Our FY15 comp, revenue and EPS estimates go to 3.9%, $12,120M and $3.71 from 3.7%, $12,411M and $3.71.
Shares of Tiffany have dropped 0.6% to $100.96, while L Brands has gained 1% to $64.32.
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