UPDATE: Deutsche Bank Raines PT to $63.50 on Signet Jewelers on Q4 Expectations

Deutsche Bank reiterated its Buy rating on Signet Jewelers

and increased its price target from $61 to $63.50. Deutsche Bank commented, "We believe the market has mis-read Q3 results, creating an excellent entry point to benefit from likely strong Q4 trading & consensus upgrades in Jan '13. It viewed US comp. store sales of 1.2% as disappointing relative to cons 4%. However it was in line with DBe - adjusting for Oct'11 Rolex promotion, US Q3 LFLs were 4.7%, same as H1. Profits were higher than DBe in both US & UK. There was a dramatic 7.5% reduction in the UK rental bill, more than the 4.5% cut in UK retail space, due to lower rents on ongoing stores, and mgt said this benefit will get larger next year. Mgt remain very positive about performance of new exclusive product ranges, which bodes well for peak trading." Signet Jewelers closed at $51.57 on Wednesday.