UPDATE: Barrington Research Initiates Coverage On Sotheby's

In a note released on Tuesday morning, Barrington Research analyst Kristine Koerber initiated coverage on Sotheby's (NYSE: BID) with a Buy rating and a $52 price target.

Shares of Sotheby's are trading up over five percent.

Koerber wrote, "The prestigious reputation of Sotheby's and its superior expertise in select artwork has allowed it to secure some of the most noteworthy collections for auction in the world."

She added that the high-end auction market is "essentially a duopoly" between Sotheby's and Christie's; Sotheby's is better positioned with favorable demographic.

In terms of valuation, Koerber sees current price levels at 18.3x and 16.2x, her respective 2014 and 2015 EPS estimate of $2.30 and $2.60 offering upside as her price target reflects a 20x multiple.