Skip to main content Navigation

Articles and News

Why Are Stock Traders Just Loving Tiffany Right Now? July 01, 2020 (0 comments)


New York, NY—Tiffany & Co. (TIF) has had its challenges in recent years: a revolving door in the management suite, a series of product flops, and a singularly stupid decision to shoot itself in the foot by jacking up prices on the silver products that kept its profit engines turning.

So why do stock traders think Tiffany stock is the best deal going?

For one thing, its stock is trading at $120, $15 a share below the $135 price agreed upon in its upcoming merger with LVMH. If the merger goes through—which at least this article on investor site Seeking Alpha thinks it will—there is profit to be made for experienced investors. LVMH tried to lower its offering price recently, citing Tiffany’s struggles in the current economic environment since the pandemic, but the jeweler remained firm and, because fundamentals of the acquisition go far beyond current conditions, LVMH backed down. 

COVID notwithstanding, the retailer has been on a better track lately. Its T collection seems to be doing well—reminiscent of its heyday of highly-sought collections—and current CEO Alessandro Bogliolo clearly knows how to leverage both the megabrand status of the retailer and its long-term commitment to sustainability.

Related: Tiffany CEO Alessandro Bogliolo On What Sets The Brand Apart

Seeking Alpha offers some key reasons why it’s bullish on TIF:

But Seeking Alpha says some macro issues do threaten the jeweler. These include:

Read more here.

Share This:

Leave a Comment:

Human Check