Bank of America Reiterates Buy on Tiffany & Co., Raises PT to $85

Bank of America reiterated its Buy rating on Tiffany & Co. TIF. At the same time, Bank of America raised its price target on Tiffany after the company reported better than expected Q1 results. In a research report published today, Bank of America states, "Tiffany reported 1Q11 EPS of $0.67 (excluding non-recurring items), better than our $0.54 estimate on higher revenue (20% growth versus our estimate of 11%). Sales growth started strong and accelerated through the quarter. The momentum has continued in May. The company raised its guidance from $3.35-3.45 to $3.45-3.55. We are raising our F2011 EPS estimate from $3.25 to $3.50 and F2012 from $3.71 to $4.00 to reflect encouraging improvement in Japan and strong sales momentum. We are raising our Price Objective to $85 from $75 to reflect our higher estimates. We continue to expect the jewelers and high end retailers to fare best in the current environment and we maintain our Buy rating." On Thursday, Tiffany closed the day at $76.04.