Barclays Maintains an 'Equalweight' on Signet Jewelers (SIG); Review of Management Meetings
Tweet
Share
E-mailGet Alerts SIG Hot Sheet
Price: $81.37 +0.43%
Rating Summary:
13 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
13 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Join SI Premium – FREE
Barclays maintains an 'Equalweight' on Signet Jewelers (NYSE: SIG), PT $49.
Barclays analyst says, "We believe the company has three key opportunities to expand its operating margin beyond its peak in 2004 of 13.2% (our current 2011 estimate calls for 12.5% operating margin): lowering bad debt to a level in line with historical averages between 2.8%-3.5% (was 5.6% in 2009 and 1.6% in 1Q11), expanding profitability in the UK (which accounts for 20% of sales and is operating at 50% of its peak operating margin of 15.2% in 2003), and returning store productivity to peak levels (Jared sales per store was $4,638 in 2010 vs. $5,649 in 2006). The company aims to maintain a relatively consistent merchandise margin and offset rising commodity costs through merchandise mix, limited discounting, and price increases. Signet raised prices twice last year."
"We believe Signet is positioned well, yet remain somewhat cautious as the middle tier customer that makes up a large portion of Signet's consumer base still remains under some pressure relative to the higher end, and could be more resistant to further price increases. We also believe the U.K. continues to see some softness."
For more ratings news on Signet Jewelers click here and for the rating history of Signet Jewelers click here.
Shares of Signet Jewelers closed at $43.68 yesterday.
Barclays analyst says, "We believe the company has three key opportunities to expand its operating margin beyond its peak in 2004 of 13.2% (our current 2011 estimate calls for 12.5% operating margin): lowering bad debt to a level in line with historical averages between 2.8%-3.5% (was 5.6% in 2009 and 1.6% in 1Q11), expanding profitability in the UK (which accounts for 20% of sales and is operating at 50% of its peak operating margin of 15.2% in 2003), and returning store productivity to peak levels (Jared sales per store was $4,638 in 2010 vs. $5,649 in 2006). The company aims to maintain a relatively consistent merchandise margin and offset rising commodity costs through merchandise mix, limited discounting, and price increases. Signet raised prices twice last year."
"We believe Signet is positioned well, yet remain somewhat cautious as the middle tier customer that makes up a large portion of Signet's consumer base still remains under some pressure relative to the higher end, and could be more resistant to further price increases. We also believe the U.K. continues to see some softness."
For more ratings news on Signet Jewelers click here and for the rating history of Signet Jewelers click here.
Shares of Signet Jewelers closed at $43.68 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Goldman Sachs Downgrades AAC Technologies Holdings Inc. (2018:HK) (AACAY) to Neutral
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
- Walmart (WMT) PT Lowered to $125 at JPMorgan, Overweight Rating Maintained as 'Short Case Feels Greedy'
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays, Raising PricesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
