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NEW YORK (TheStreet) -- Cowen increased its price target on Tiffany & Co. (TIF) stock to $74 from $68 after the the high-end jewelry retailer reported better-than-expected profit for the 2016 second quarter Thursday morning. 

The firm pointed to four factors that must occur for it to "get constructive" on the stock, Barron's reports. 

First, Tiffany would need to demonstrate improved unit performance given "more newness," especially on items below $500. Second, the retailer would need to enact new marketing initiatives to drive better engagement performance. Third, Tiffany should continue to enhance in-store experience and customer engagement, which would lead to better traffic and conversion.

Finally, the firm needs to see potential revenue upside to 2016 guidance due to an improved retail environment in Asia and Hong Kong, a reacceleration in U.S. luxury demand and/or stronger momentum in global Chinese spending, Barron's notes.

For now, Cowen reiterated a "market perform" rating on the stock. 

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Shares closed higher in Friday's trading session. 

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.

Tiffany's strengths such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.

You can view the full analysis from the report here: TIF

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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