Out of the Gate: Tiffany Climbs

NEW YORK (AP) -- Shares of Tiffany & Co. rose in morning trading Friday, after the luxury jewelry retailer beat analyst estimates for adjusted second-quarter earnings and sales.

Shares added $1.43, or 2.9 percent, to $50.83.

The company on Thursday said same-sales rose 17 percent in the U.S. Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Tiffany also raised its full-year profit and sales outlook above analyst projections.

Buckingham Research Group analyst Barbara Wyckoff kept an "Accumulate" rating on shares and raised her target price to $58 from $54.

"From a macro viewpoint, the global luxury market outside of Japan continues to do well and we believe that Tiffany should continue to benefit from robust global demand in every market outside of Japan, given the explosion of new wealth, particularly with the younger demographic," the analyst wrote.

Banc of America Securities analyst Dana E. Cohen reiterated a "Buy" rating on the stock with a $57 target price.