Signet Jewelers (SIG) Bottom Line Pressured By Promos, PT To $42 At Jefferies

Nomura/Instinet analyst, Simeon Siegel, reiterated his Neutral rating on shares of Signet Jewelers (NYSE: SIG) and cut his price target to $42 from $62 on increased promotional activity. Management repeatedly stressed the need for promotions given slow moving product coupled w/competitor pressure on the 3Q earnings call and the analyst is now seeing those challenges playing out.

The analyst stated "We continue to value the role the company plays in the industry; however, we remain sidelined until we see greater clarity regarding SIG’s ability to sustainably & healthily grow sales. We maintain 4Q EPS estimates, but lower FY20E given an underlying 4Q EBIT guide-down. Should 4Q’s tax savings cont., we’d expect to re-raise our EPS, but flowing through lower EBIT into FY20 lowers our estimates, and we lower TP meaningfully to $42 (~11x)".

For an analyst ratings summary and ratings history on Signet Jewelers click here. For more ratings news on Signet Jewelers click here.

Shares of Signet Jewelers closed at $38.55 yesterday.

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