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Tiffany tarnished by Goldman Sachs downgrade

Published 09/22/2017, 07:05 PM
Updated 09/22/2017, 07:05 PM
© Reuters.  Tiffany tarnished by Goldman Sachs downgrade
  • Tiffany (NYSE:TIF) tumbled 2.2% in today;s trade after Goldman Sachs (NYSE:GS) downgraded shares to Neutral from Buy with a $94 price target, trimmed from $106, foreseeing struggles for its higher-end luxury goods segment even as new management works to revive revenue growth.
  • "Fresh weakness in Tiffany's highest price point categories leaves us concerned that the turnaround timeline is pushed further out" for a broader sales recovery, Goldman's Lindsay Drucker Mann writes, noting weakness in TIF's high-end categories including engagement, wedding and solitaire jewelry amid improved results in lower-priced designer and fashion categories.
  • Q2 comparable sales growth in the Americas and Asia Pacific regions fell a respective 1% and 7% "despite easy multi-year comparisons," with an overall 2% comp sales decline, and Drucker Mann sees TIF's valuation capped without a revenue rebound.
  • Now read: Tiffany: Reassessing The Bullish Thesis

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