Canaccord Genuity Downgrades Tiffany to “Hold” on Weakening Sales Momentum (TIF)

Jewelry retailer Tiffany & Co. (TIF) on Thursday caught a big downgrade from analysts at Canaccord Genuity.

The firm cut its rating on TIF from “Buy” to “Hold” but left its $58 price target unchanged. That target suggests a 7.5% downside to the stock’s Wednesday closing price of $62.73.

A Canaccord Genuity analyst commented, “We are downgrading shares of TIF from Buy to HOLD as the company’s sales momentum continues to decelerate against an uncertain macroeconomic backdrop. Recent tax law changes threaten to pressure luxury spending, particularly from aspirational consumers. We believe TIF’s near-term visibility is clouded as evidenced by the fact that EPS has missed expectations for four consecutive quarters, and recent guidance for FY12 EPS at the low end of the $3.20-$3.40 range is 19% below management’s initial outlook.”

Tiffany shares were mostly flat in Thursday morning trading. The stock is essentially unchanged over the past year.

The Bottom Line
Shares of Tiffany & Co. (TIF) have a 2.04% dividend yield, based on last night’s closing stock price of $62.73. The stock has technical support in the $57-$60 price area. If the shares can firm up, we see overhead resistance around the $65-$66 price levels.

Tiffany & Co. (TIF) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here