Cantor Fitzgerald Initiates Tiffany & Co. at “Buy” (TIF)

Tiffany & Co. (TIF) should be able to continue to increase its market share, according to analysts at Cantor Fitzgerald. Because of this, the analysts started coverage on the fine jewelry maker with a bullish rating on Thursday.

The analysts rate TIF as “Buy” and see shares reaching $88. This price target suggests a 15% upside to the stock’s Wednesday closing price of $76.34.

Cantor Fitzgerald analyst Allegra Perry said, “We believe Tiffany is well positioned to continue gaining market share in one of the most fragmented and fastest growing segments within the luxury goods sector. In addition to being a structural space growth story, Tiffany's key growth initiatives to improve store productivity and operating margins (below peak) should help drive mid-to high-teens earnings growth while potentially tripling free cashflow in the medium term on our estimates. Strong fundamentals together with the potential support from being considered a takeover target suggest a premium multiple is warranted in our view.”

Tiffany & Co. shares were inactive during pre-market trading on Thursday. The stock is up 33.14% year-to-date.