(Bloomberg) -- It looks like Tiffany & Co. may have given holiday shoppers just the sort of gifts they were prowling for: A sterling silver ice cream scoop, or maybe a classy ruler.
Both luxury products -- part of the company's recently introduced Everyday Objects collection and priced at $375 and $450 respectively -- are currently displayed as sold-out online, joining more traditional paperweights and small storage items, according to a check of Tiffany's website. Most of the sought-after gifts are priced at less than $900, while the collection's highest-priced objects, including a woven sterling bird's nest selling for $10,000, remain in stock.
The "surprisingly strong" response from consumers to the collection prompted KeyBanc Capital Markets analyst Ed Yruma to raise the stock's 12-month price target to a Street-high of $120, compared with the average of $101. The product line, while a small part of Tiffany's business, shows it's "willing to take a fresh look at the brand, and that they have the courage to do that," Yruma said in a phone interview. Foot traffic also got a lift, especially at the company's flagship New York location, he said. While analyst and investor confidence was shaken by flat same-store sales last quarter, the stock remains one of KeyBanc's "best ideas" for 2018.
To contact the reporter on this story: Emma Ockerman in New York at eockerman@bloomberg.net.
To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net, Morwenna Coniam, Courtney Dentch
©2018 Bloomberg L.P.
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