In a report released today, Mauricio Serna from UBS maintained a Buy rating on Signet Jewelers, with a price target of $110.00.
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Mauricio Serna has given his Buy rating due to a combination of factors that suggest a positive outlook for Signet Jewelers. Despite a recent decline in stock price, Serna anticipates a solid performance in the upcoming quarters. The company’s Q3 results are expected to surpass earnings estimates, and while the Q4 guidance may be conservative due to increased tariffs in India, this is already reflected in the current stock price. The options market also suggests a potential for significant volatility, indicating investor interest and potential upside.
Serna also notes that sentiment around Signet Jewelers is currently bearish, with a crowding score below the industry average and high short interest. However, the company’s valuation appears attractive, with a price-to-earnings ratio significantly lower than its peers. Additionally, data from UBS Evidence Lab indicates strong online traffic growth for Signet’s US banners, and the company’s recent performance has outpaced the S&P 500. These factors contribute to the expectation that Signet’s stock will outperform in the near term, supporting the Buy rating.
In another report released on November 17, Citi also maintained a Buy rating on the stock with a $110.00 price target.