Barclays Maintains an 'Equalweight' on Signet Jewelers (SIG); Review of Investor Day
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Price: $81.02 -4.95%
Rating Summary:
13 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
13 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Equalweight' on Signet Jewelers (NYSE: SIG) price target of $49.00.
Barclays analyst says, "Sales trends at Signet have been solid QTD, with same store sales in line with 2Q11, which were up 9.9%. The company had double-digit increases in the first eight weeks of Q3 at both Jared and Kay. We believe this comp increase has been broad-based and driven by both price increases and a shift to higher priced merchandise."
"Importantly, Signet outlined its capital allocation strategy, as well as identified its target cash balance of $300 mm (or 7-8% of sales) in order to maintain a strong balance sheet. Going forward, potential uses for excess cash include: 1) Re-investing in the business (we believe Signet can grow its store base by 40% long term to a total of 850 Kay mall stores, 500 off-mall Kays, and 300 Jared stores), 2) supporting new initiatives (such as expansion into new geographies or distribution channels, either organically or through acquisitions), and 3) enhancing shareholder returns."
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 $36.67 yesterday.
Barclays analyst says, "Sales trends at Signet have been solid QTD, with same store sales in line with 2Q11, which were up 9.9%. The company had double-digit increases in the first eight weeks of Q3 at both Jared and Kay. We believe this comp increase has been broad-based and driven by both price increases and a shift to higher priced merchandise."
"Importantly, Signet outlined its capital allocation strategy, as well as identified its target cash balance of $300 mm (or 7-8% of sales) in order to maintain a strong balance sheet. Going forward, potential uses for excess cash include: 1) Re-investing in the business (we believe Signet can grow its store base by 40% long term to a total of 850 Kay mall stores, 500 off-mall Kays, and 300 Jared stores), 2) supporting new initiatives (such as expansion into new geographies or distribution channels, either organically or through acquisitions), and 3) enhancing shareholder returns."
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 $36.67 yesterday.
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