Signet Jewelers downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo downgraded Signet Jewelers (SIG) to Equal Weight from Overweight with a price target of $70, down from $80. The firm cites its highly discretionary nature and sensitivity to economic downturns. On top of the category issues, Signet Jewelers has struggled to generate positive comparable sales the past several years and is currently dealing with a structural pressure point in their industry as well as potentially shifting their strategic focus away from bridal and more towards fashion. All in, there are “several balls in the air” and this is a tough macro to try and figure out all of these issues, Wells adds.