Tiffany(TIF) - Get Report stock rose 1.70% to $81.92 in Friday's trading session after Wells Fargo upgraded shares to "market perform" from "underperform" on signs of improving demand for luxury goods. 

The firm pointed to Richemont's better-than-expected third-quarter sales, noting that the global luxury retail market appears to have bottomed in the first half of 2016.

Richemont, a Swiss jeweler and watchmaker, posted a 5% increase in third quarter sales on Thursday, driving shares of New York City-based Tiffany and European luxury brands including Prada (PRDSY) , Luxottica (LUX)  and Swatch (SWGAY)  to close Thursday's trading session in positive territory.

"While it remains to be seen how robust the recovery in the global luxury market will be, at the very least the sharp declines that weighed on late-2015/early-2016 have moderated and the outlook for luxury is more favorable than it's been in at least 18-24 months," Wells Fargo analysts wrote today.

The firm claimed that Tiffany could benefit from House Speaker Paul Ryan's proposed border tax adjustment, but said risks to the business include a traffic disruption at its flagship store and dwindling tailwinds from commodity deflation.