Signet Jewelers (SIG) PT Raised to $120 at Wells Fargo

Wells Fargo analyst Ike Boruchow raised the price target on Signet Jewelers (NYSE: SIG) to $120.00 (from $100.00) while maintaining an Overweight rating.

The analyst commented, "After announcing the acquisition of Diamonds Direct for $490M in cash in early October, this morning SIG indicated the deal is now closed and provided more details surrounding the transaction. The $490M price tag reflects 1.1x revenue multiple on annualized revs (~$445M) and 7.1x EBITDA (~$70M or ~15.5%). Recall in our prior note surrounding the transaction (here), we estimated that the acquisition would generate $400-450M in annual revs on a 12-14% EBIT margin, fairly in line with today's disclosed financials. However, now that the deal has closed, we are officially adding the accretion to our model."

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