Buy Rating on Signet Jewelers Supported by Resilient Holiday Trends and Growing Lab-Grown Diamond Momentum

In a report released yesterday, Mauricio Serna from UBS maintained a Buy rating on Signet Jewelers, with a price target of $115.00.

Mauricio Serna has given his Buy rating due to a combination of factors that point to a resilient operating backdrop and supportive industry trends for Signet Jewelers. His expert channel checks indicate that U.S. jewelry sales for the holiday period are still growing modestly year over year and that this pattern is likely to extend into the coming calendar year, suggesting a low-single-digit industry growth environment. Despite pressures from higher gold costs and tariffs, retailers are sustaining or even improving gross margins, helped by limited incremental discounting and higher average transaction values, which supports a constructive earnings outlook for SIG. In addition, the company is positioned to benefit from rising average tickets, as consumers gravitate toward higher-priced items where conversion remains comparatively stronger.
Mauricio also highlights favorable mix dynamics in the jewelry category, particularly the strength in bridal driven by lab-grown diamonds, an area where penetration continues to climb and pricing in key carat sizes has been relatively steady. This ongoing shift toward lab-grown offerings aligns with Signet’s product focus and should support both sales growth and margin stability. While fashion and gifting jewelry have been softer due to heightened competition, including from Signet’s own banners, the firm’s increasing presence in the gifting space and expanded lab-grown assortment are viewed as strategic positives that can capture incremental demand. Taken together, these trends underpin his view that Signet’s fundamental trajectory remains attractive, justifying a continued Buy recommendation.

SIG’s price has also changed slightly for the past six months – from $79.550 to $83.040, which is a 4.39% increase.