J.P. Morgan Raising Estimates, Price Target On Tiffany's After Earnings

J.P. Morgan Chase & Co. is raising its earnings estimates on Tiffany & Co. TIF following the company's earnings report. It has a $75 price target, up from $62, and a Neutral rating on shares. In a note to clients, J.P. Morgan writes, "We are raising our 2011/2012 EPS estimates to $3.54/$4.05 (from $3.35/$3.80). Our PT is raised to $75 (from $62) based on 18-19x our upwardly revised 2012 EPS estimate. That would put it slightly above the global luxury basket against which we benchmark TIF (Burberry, Fossil, LVMH, Ralph Lauren, Richemont, Swatch, and Coach). Also, TIF typically trades at a 15-20% (currently a 25% premium) to the specialty retail group that we monitor, potentially due to its above-average footage prospects, lack of markdown risk, and high margins. The market has clearly been rewarding stocks that carry a global growth story, and TIF is just that. That said, at this point we feel shares are appropriately priced on all valuation metrics." Shares of TIF gained 46 cents on Friday to close at $76.50, a gain of 0.6%.