Citi Adjusts Estimates on Signet Jewelers (SIG)

Citi adjusts estimates on Signet Jewelers (NYSE: SIG) following higher-than-forecasted 3Q PBT.

In a note to clients, Citi writes, "On the back of another impressive quarter led by a further acceleration in US LFL and stability in the UK, we raise our January 2011E PBT 12% to $325m (EPS 254c, +32% yoy). As Signet continues to take market share (Zales LFL -1.1%), gross margins remain strong and bad debt/sales decline further, we believe the upgrade cycle for Signet will continue into 2011. We retain our positive stance."

Citi maintains its Buy rating and increases its price target from GBP23.00 to GBP29.00. on SIG.

SIG closed Tuesday at $40.61.

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