Tiffany Takeover Whispers Buoying Value
In the eye of the investor, Tiffany & Co.’s blue-boxed gifts are so alluring to potential suitors that not even the worst earnings stretch in at least a decade has put a dent in its valuation.
Even though the $7.6 billion company has missed profit estimates in four straight quarters and said last week that analysts’ fiscal 2014 projections were too high, the jewelry seller fetches 18.6 times earnings, according to data compiled by Bloomberg. That’s only 0.4 point lower than the multiple in March, when the shortfalls started, as takeover speculation helps support the shares, Ariel Investments LLC said.
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