Shares of Tiffany & Co. (TIF) - Get Report were climbing nearly 2% during afternoon trading on Tuesday after its stock was added to Bank of America/Merrill Lynch's U.S. 1 list, a collection of the firm's favorite stock ideas.
BofA analyst Lorraine Hutchinson cites new management initiatives and improving U.S. same-store-sales as the reason for the stock's addition.
"Tiffany launched its new HardWear collection in April and new Creative Director, Reed Krakoff, will release a new gifting and accessories line in stores ahead of Holiday 2017," Hutchinson noted.
New Tiffany management has stated its intentions to roll out new collections more frequently.
"Comparable store sales growth has historically accelerated by several hundred basis points after the launch of major collections," she added.
Further, Hutchinson noted that U.S. same-store sales should turn positive following the recent string of negative same-store sales.
What's Hot On TheStreet
Another bank is bullish on Alibaba: JP Morgan initiated Chinese e-commerce giant Alibaba (BABA) - Get Report with an overweight rating and $190 price target in a new note Tuesday, representing more than 30% growth over Monday's closing price of $142.73. In JP Morgan's eyes, Alibaba is entering a transformation from a pure play e-commerce company to a data-driven beast that stands to power its bottom line more than most expect.
"We believe Alibaba's core commerce is expanding from traffic monetization to data monetization and such trend will quickly expand to its media/cloud businesses," writes JP Morgan analyst Alex Yao. "Such expansion not only allows Alibaba to tap into non-transaction-based corporate budget (e.g. market research, brand awareness, and customer service), but also supports our investment thesis based on sustainable revenue/earnings growth."
A key Walmart business springs back to life: Walmart (WMT) - Get Report is starting to see long-awaited sales growth at its U.K. Asda division as Britons shift their shopping habits towards food purchases with a slump in consumer confidence and surging inflation, TheStreet's Lisa Botter reports. Sales at Asda rose by 2.2% for the 12-weeks ended June 18, well ahead of the 0.9% pace notched in the 12 weeks to May 21, according to new data from research firm Kantar.
Different strategies emerge in driver-less cars: Alphabet Inc.'s (GOOGL) - Get Report deal with rental car giant Avis Budget Group Inc. (CAR) - Get Reportto have Avis managesome self-driving test cars developed by Alphabet's Waymo unit and Fiat Chrysler (FCAU) - Get Reportfeels a little overblown, writes TheStreet's Eric Jhonsa. The deal only covers test cars deployed in one metro area (Phoenix, Ariz.), and isn't exclusive, Jhonsa points out.
Meanwhile, Apple Inc.'s (AAPL) - Get Report deal with Avis rival Hertz Global Holdings Inc. (HTZ) - Get Reportfeels even smaller. Apple, which has reportedly been testing a half-dozen self-driving cars around the San Francisco Bay Area, is just leasing a small number of Lexus RX450h SUVs from Hertz, with the idea of retrofitting them with self-driving test systems.
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