NEW YORK—JMP Securities analyst Kristine Koerber raised her rating on Sotheby’s stock to “strong buy” from “market perform” on March 26, citing rising art prices as a result of global demand.
Despite the fact that shares have already risen by more than 50 percent this past year, Koerber sees a further upside to the share price, citing the strength of recent Chinese and Indian art sales as well as strong offerings in the upcoming spring auctions. These include a 1950 painting by Mark Rothko that is estimated to be around $40 million, as well as a Paul Cézanne watercolor that is expected to bring $14/18 million.
Shares got an immediate boost following news of the upgrade, rising from below $39 on March 21 to more than $43 on March 26 in trading on the New York Stock Exchange. As ARTnewsletter went to press, shares were trading at $42.52.