UPDATE: Nomura Initiates Coverage on Signet Jewelers Ltd. with Buy Rating, $80 PT on Expected Sales Growth

In a report published Monday, Nomura analyst Simeon Siegel initiated coverage on

with a Buy rating and $80.00 price target. In the report, Nomura noted, “We expect ongoing MSD to HSD sales growth driven by LSD comp and square footage increases along with $0.15+ of FY15 EPS accretion from Ultra, as the company expands its focus on the outlet channel. Additionally, the company will not incur the $0.09–0.11 integration-related drag experienced this past year, and we would expect to see a rapid improvement in the SGA rate as the company leverages SIG's platform. We are projecting FY14/FY15 EPS estimates of $4.73/$5.45 compared to the Street at $4.77/$5.39. Our target price of $80 is based on 14–15x our FY15 estimate of $5.45, below our coverage universe group average 18x multiple due to uncertainty around timing for Ultra's EPS benefit.” Signet Jewelers Ltd. closed on Friday at $66.98.