Tiffany: Credit Suisse downgrades to 'neutral'
(CercleFinance.com) - Credit Suisse downgraded its rating on the Tiffany stock from "outperform" to "neutral," while maintaining a target price of 135 dollars, following the upmarket jeweler's "disappointing" third-quarter results.
The quarterly report supports the broker's view that the proposed LVMH deal is "likely the best path" for the New York-based company, it said.
Joining a larger organization like LVMH's jewelry division should let Tiffany focus on making overdue investments to reposition for significantly improved sales and margins for the long term, Credit Suisse noted.
The primary risk from here is whether Tiffany shareholders accept the proposed deal price, it added.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The quarterly report supports the broker's view that the proposed LVMH deal is "likely the best path" for the New York-based company, it said.
Joining a larger organization like LVMH's jewelry division should let Tiffany focus on making overdue investments to reposition for significantly improved sales and margins for the long term, Credit Suisse noted.
The primary risk from here is whether Tiffany shareholders accept the proposed deal price, it added.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.