Bank of America makes Tiffany one of its top stock picks; shares jump

Key Points
  • Bank of America Merrill Lynch added Tiffany & Co. (TIF) to their US 1 list, a collection of the bank's favorite investment ideas
  • Earlier this year, Tiffany beat expectations with strong international sales and product price hikes.
A pedestrian walks past a Tiffany store on Canton Road in the Tsim Sha Tsui area of Hong Kong.
Brent Lewin | Bloomberg | Getty Images

Bank of America Merrill Lynch added Tiffany & Co. to its US 1 list, a collection of the corporation's favorite investment ideas. Analyst Lorraine Hutchinson provided several reasons why investors should consider buying Tiffany, including a management and board overhaul as well as an increased focus on innovation.

Tiffany shares jumped nearly 2 percent in midday trading Tuesday.

Though Tiffany has typically debuted major collections every three to five years, new leadership looks to release new products more frequently.

"TIF 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," wrote Hutchinson. "Comp growth has historically accelerated by several hundred basis points after the launch of major collections."

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