Analyst Paul Lejuez from Citi maintained a Buy rating on Signet Jewelers and keeping the price target at $110.00.
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Paul Lejuez has given his Buy rating due to a combination of factors that suggest a positive outlook for Signet Jewelers. The company is expected to report third-quarter earnings per share significantly above consensus estimates, driven by strong sales and favorable industry trends. Despite the pressure from increased tariffs on imports from India, which affects a substantial portion of Signet’s merchandise, the company has managed to mitigate some of these impacts by having a significant amount of inventory already in the U.S. before the tariff hike.
Additionally, the jewelry industry is experiencing a favorable trend in average unit retail prices, as companies are passing on higher costs from tariffs and rising gold prices to consumers. This environment, combined with Signet’s strategic inventory management and the potential for tariff relief, presents a compelling risk/reward scenario. Although there are short-term challenges due to tariffs, the overall growth prospects and industry dynamics support a Buy rating for Signet Jewelers.
According to TipRanks, Lejuez is a 5-star analyst with an average return of 9.2% and a 57.08% success rate. Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Dick’s Sporting Goods, Kohl’s, and Abercrombie Fitch.
In another report released on November 10, Stephens also initiated coverage with a Buy rating on the stock with a $150.00 price target.