What Analysts Recommend for Signet Stock after Fiscal 2Q18
Analysts remain neutral
Most analysts providing recommendations on Signet Jewelers (SIG) stock have maintained a neutral outlook, despite the company’s better-than-expected fiscal 2Q18 results. Signet’s top line is expected to benefit from increased sales of fashion jewelry, omnichannel offerings, and its focus on new collection launches.
Expense control measures, the closure of underperforming stores, and the acceleration of its share repurchase program are all likely to drive bottom-line growth.
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However, soft industry trends due to weak consumer spending and higher promotional activity are expected to remain a drag and are likely keeping analysts on the sidelines. SIG’s third quarter results are likely to remain muted due to the absence of any significant events that will help drive sales growth.
SIG’s analysts maintain a consensus score of 2.5 on a scale of 1.0 (“strong buy”) to 5.0 (“strong sell”). Of the 13 analysts covering the stock, 38.0% maintain a “buy,” and 62.0% recommend a “hold.”
As of August 25, 2017, analysts have maintained a target price of $67.73 per share on SIG stock, representing an upside of 8.1% to the company’s current market price of $62.68.
By comparison, analysts also maintain a neutral stance on rival Tiffany (TIF) stock as weak tourist spending in the US (SPY) is likely to restrict the company’s upside growth rate. Of the 26 analysts providing recommendations on TIF stock, 46.0% have a “buy” rating, while 54.0% recommended a “hold.”