UPDATE: Barclays Initiates Coverage On Tiffany & Co Amid 'Difficult Global Conditions'

Barclays initiated coverage on Tiffany & Co (NYSE: TIF) Friday with an Equal-weight rating.

Analyst Joan Payson liked the initiatives underway, but thinks "the stock does not fully reflect softness in international markets, which represented 58 percent of sales last year and could create near-term earnings risk."

"Tiffany could be considered the closest to an absolute luxury brand in the U.S. Luxury sector based on pricing (ASP $2,250) and distribution (95 percent+ retail with only 293 stores vs. up to 1,000 for others in our space), and as such, we expect global high end consumers will become increasingly interested in the brand," according to Payson.

Payson expected "international markets to drive 55 percent of revenue and EPS growth by 2017. However, in the face of difficult global conditions, we believe 2H14 may be challenged."

The report expected FY 2014 EPS of $4.28, below consensus of $4.35.

Macquarie recently took a different perspective and upgraded Tiffany & Co., raising EPS estimates.

Tiffany & Co recently traded at $89.45, down 1.40 percent.