The firm lowered its rating to "market perform" from "outperform" and reduced its price target to $70 from $75.
Shares closed Monday's trading session up 1.39% to $64.73.
According to the company's holiday sales report, sales in the Americas were down 7% on weak holiday spending, analysts noted. This is significant because sales in the Americas make up 48% of the sales mix.
Instead, the firm prefers Signet Jewelers (SIG), recommending investors to buy the stock. "We prefer to play the jewelry space through Signet's exposure to the middle-income consumer, as well as their propensity to remain a leader and gain additional share in a fragmented market," analysts added.
Given Tiffany's near term risks, analysts are siding with the bears for now.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B-.
Tiffany & Co. reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, TIFFANY & CO increased its bottom line by earning $3.73 versus $1.40 in the prior year. This year, the market expects an improvement in earnings ($3.78 versus $3.73).
Recently, 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 articles's author.
You can view the full analysis from the report here: TIFTIF data by YCharts