Tiffany: bid could reach 140 dollars, Credit Suisse says
(CercleFinance.com) - Credit Suisse maintains its "outperform" rating on the Tiffany stock and has raised its corresponding target price from 113 dollars to 140 euros, after LVMH made a bid to acquire the company.
In a note to clients, the broker said that the luxuryt jeweler's value is "significantly higher" than LVMH's 120 dollar a share offer.
Credit Suisse said it expects the New York-based company to quickly dismiss LVMH's initial proposal as its shares were already trading at 140 dollars in 2018.
Furthermore, a peer analysis suggests that Tiffany's underlying EPS power could be as much as twice the current consensus for 2019, it said.
"We think the bid could reach 140 dollars quickly," Credit Suisse pointed out in its note.
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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.
In a note to clients, the broker said that the luxuryt jeweler's value is "significantly higher" than LVMH's 120 dollar a share offer.
Credit Suisse said it expects the New York-based company to quickly dismiss LVMH's initial proposal as its shares were already trading at 140 dollars in 2018.
Furthermore, a peer analysis suggests that Tiffany's underlying EPS power could be as much as twice the current consensus for 2019, it said.
"We think the bid could reach 140 dollars quickly," Credit Suisse pointed out in its note.
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.