Tiffany and Co. (TIF)

[Amaunet]

RESEARCH ALERT-CSFB raises Tiffany to buy
8/17/01 4:46 AM
Source: Reuters

NEW YORK, Aug 17 (Reuters) - Credit Suisse First Boston on Friday raised its rating on Tiffany & Co. to ``buy'' from ''hold,'' a day after the jewelry retailer posted second-quarter earnings in line with lowered expectations.

In a research note, analyst Richard Baum set a 12-month price target of $40.

``(Second-quarter earnings) were challenged by difficult sales and earnings comparisons and an unfavorable economic climate,'' Baum said in the note. ``Nonetheless, gross margin rate increased and expenses were well controlled.''

The analyst lowered his projection for fiscal 2001 earnings to $1.30 per share from $1.32 per share, ``consistent with management's second-half guidance.''

Tiffany on Thursday reported an 8 percent decline in second-quarter profits amid slowing sales. Net income fell to $36.1 million, or 24 cents a share, from $39.2 million, or 26 cents a share.

Baum warned that Tiffany's stock may not move up from current levels until earnings begin to reaccelerate, but said he believes there is less downside than with most apparel retailers.

``The principal risk continues to be macro-economic, not company specific,'' the analyst said.

Tiffany shares finished at $33.58 on the New York Stock Exchange Thursday. The stock has a 52-week high of $44.56 and a 52-week low of $25.12.

Copyright 2001, Reuters News Service