In a report released today, Lorraine Hutchinson from Bank of America Securities reiterated a Hold rating on Signet Jewelers, with a price target of $100.00.
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Lorraine Hutchinson’s rating is based on a balanced view of Signet Jewelers’ current market position and potential risks. The company reported strong second-quarter earnings, surpassing expectations due to improved sales and margins. However, the increased tariff on goods sourced from India, which constitutes a significant portion of Signet’s merchandise, presents a substantial risk to future earnings.
Despite the positive sales trends and management’s optimistic guidance, the uncertainty surrounding the tariff impact on gross margins and future earnings has led to a cautious outlook. Hutchinson believes that the current stock valuation adequately reflects these risks and opportunities, justifying a Hold rating. The company’s ongoing efforts in fashion growth, particularly in lab-grown diamonds, are promising, but the potential tariff pressures necessitate a careful approach.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $90.00 price target.