Optimistic Buy Rating for Signet Jewelers Amid Strong EPS Projections and Favorable Market Conditions

In a report released yesterday, Paul Lejuez from Citi maintained a Buy rating on Signet Jewelers (SIG – Research Report), with a price target of $85.00.

Paul Lejuez has given his Buy rating due to a combination of factors including expectations of Signet Jewelers outperforming consensus estimates for their first-quarter earnings per share (EPS). He anticipates that the company will report an EPS of $1.17, which is higher than the consensus of $1.03. Despite the challenging consumer environment, management is expected to maintain their full-year guidance, with a wide range of EPS projections, indicating confidence in their ability to navigate market conditions.
Additionally, Lejuez highlights that Signet Jewelers is less impacted by tariffs compared to companies with significant exposure to China, as a substantial portion of their jewelry is sourced from India. Positive trends in high-frequency data such as credit card spending, foot traffic, and web traffic further bolster his optimistic outlook. With the stock trading at a low multiple of expected future earnings, he sees a favorable risk/reward scenario, contributing to his Buy rating.

In another report released yesterday, UBS also maintained a Buy rating on the stock with a $84.00 price target.