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Tiffany's stock sells off after analyst downgrade, on concerns over dollar strength

Shares of Tiffany & Co. TIF, -2.01% shed 2% in morning industry Friday, after the high-end jewelry vendor was downgraded at Oppenheimer, which cited issues over the unfavorable affect of a emerging greenback. Analyst Brian Nagel minimize his ranking to accomplish from outperform. Nagel mentioned he still appears to be like "very favorably" on Tiffany's longer-term prospects, as a famous activist investor, new senior leadership and an underlying stepped forward backdrop will have to help pressure profitability. "In the nearer term, we are simply concerned that recent shifts in global currencies could weigh on domestic sales to foreign tourists and knock shares from now peakish valuations," Nagel wrote in a observe to shoppers. The U.S. Dollar Index DXY, +0.68% surged 0.7% towards a 13-month high Friday, making U.S. merchandise dearer to foreign tourists. Tiffany's inventory has run up 29% 12 months so far, whilst the SPDR S&P Retail ETF XRT, +0.06% has complex 13% and the S&P 500 SPX, -0.71% has received 6.3%.

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