UPDATE: Morgan Stanley Raises PT on Tiffany to $81

Morgan Stanley is out with its report today on Tiffany (NYSE: TIF), raising its PT from $70 to $81.

In a note to clients, Morgan Stanley writes, "TIF reported 1Q EPS of $0.67, ahead MS, consensus, and guidance of $0.57. Solid 20% sales growth (+16c) and 50 bps gross margin expansion (+1c) were key sources of upside vs. our estimate. 1Q's positive sales surprise drives 2011e EPS to $3.50 from $3.33 and our PT to $81 from $70. Our '11 and ‘12 estimates appear beatable and we view our bull case as a more likely outcome ($3.70 EPS in 2011e, $4.50 in 2012e), yielding a $90 stock or 18% upside from here."

Morgan Stanley maintains Overweight on TIF.

At the time of posting, shares of TIF were trading at $75.84, down 0.26% from Thursday's close.