JEFFERIES: 4 reasons Tiffany will continue to shine (TIF)

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March 15, 2017 3:45 PM

Tiffany shares can rise from here, says a team at Jefferies.

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Shares of Tiffany & Co., the American luxury jewelry retailer, could rise further as the company's margins and earnings improve, according to Jefferies.

Jefferies analysts led by Randal J. Konik.

Their investment outlook was based on four catalysts.

Tiffany is succeeding in its efforts to revive customer interest in fashion jewelry.

Tourists have long been a major source of sales for Tiffany, accounting for about 25% of total US sales and 40% of sales in its flagship New York store.

"Total international passengers traveling to the US increased +1.0% y/y for the most recent fiscal quarter measured."

Despite competition, Tiffany has built a strong brand with enough pricing power to protect margins.

Tiffany has grown its international market share, and looks set to maintain its growth.

"Given the market that Tiffany operates in, along with a strong brand that affords significant pricing power, the company is not susceptible to Amazon or Walmart."

Finally, Jefferies said Tiffany also trades below peers both on a P/E and EV/EBITDA basis.

The company is expected to release its next quarterly earnings report on Friday. Previously, it reported a worldwide drop in

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