While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.
What: Shares of Tiffany & Co. (NYSE: TIF ) climbed nearly 2% today after Canaccord Genuity upgraded the jewelry retailer from sell to hold.
So what: Along with the upgrade, analyst Laura Champine boosted her price target to $83 (from $65), representing about 7% worth of downside to Friday's close. While Champine isn't exactly thrilled over Tiffany's appreciation prospects, she believes that continued margin expansion should limit the risks in 2014.
Now what: Canaccord raised its 2014 EPS estimate for Tiffany by $0.41 to $4.51 on a gross margin increase of 195 basis points. "We think our prior gross margin outlook for Q4 and beyond was conservative given persistent metal and diamond cost deflation and price increases that have only recently begun flowing through the P&L," noted Canaccord. "Our longer-term projections also reflect further margin opportunity through fixed cost leverage and product mix as new products aim to revive the silver business." With Tiffany up more than 60% from its 52-week lows and trading at a P/E of 25, however, I'd wait for a wider margin of safety before buying into that opportunity.
More reliable ways to build wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.