Barclays Maintains an 'Equalweight' on Signet Jewelers (SIG); Review of Meetings with Management
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Price: $81.76 +0.91%
Rating Summary:
13 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
13 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on Signet Jewelers (NYSE: SIG) price target of $49.00.
Barclays analyst says, "After reporting its strong performance in Q2, Signet has seen no change in trends so far in Q3. The consumer in the U.S. appears to be in better shape than in 2008, with lower debt levels, and steady (though high) unemployment levels. The environment in the U.K. remains challenging; however, the company intends to continue to invest in this region. Planned investments include upgrading the store portfolio with new locations and remodels, enhancing infrastructure, and developing new merchandise."
"We believe that the key to surpassing peak operating margins longer term will be to improve store productivity and lower bad debt levels. While the Kay format is operating near its previous sales per store peak, Jared is currently generating $4.6 mm per store, vs. peak level of $5.6 mm. Bad debt levels have been steadily declining toward their historical average of 2.8%-3.5%, vs. 2009 level of 5.6%. The U.K. stores H. Samuel and Ernest Jones are operating below their 2007 peak productivity levels, with opportunity to improve and increase profitability."
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 $35.74 yesterday.
Barclays analyst says, "After reporting its strong performance in Q2, Signet has seen no change in trends so far in Q3. The consumer in the U.S. appears to be in better shape than in 2008, with lower debt levels, and steady (though high) unemployment levels. The environment in the U.K. remains challenging; however, the company intends to continue to invest in this region. Planned investments include upgrading the store portfolio with new locations and remodels, enhancing infrastructure, and developing new merchandise."
"We believe that the key to surpassing peak operating margins longer term will be to improve store productivity and lower bad debt levels. While the Kay format is operating near its previous sales per store peak, Jared is currently generating $4.6 mm per store, vs. peak level of $5.6 mm. Bad debt levels have been steadily declining toward their historical average of 2.8%-3.5%, vs. 2009 level of 5.6%. The U.K. stores H. Samuel and Ernest Jones are operating below their 2007 peak productivity levels, with opportunity to improve and increase profitability."
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 $35.74 yesterday.
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