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UPDATE: Nomura Initiates Coverage on Signet Jewelers on Expected Sales Growth

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In a report published Monday, Nomura analyst Simeon Siegel initiated coverage on Signet Jewelers Ltd. (NYSE: SIG) 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.

Latest Ratings for SIG

DateFirmActionFromTo
Nov 2015Johnson RiceInitiates Coverage onBuy
Nov 2015JP MorganInitiates Coverage onOverweight
Oct 2015Goldman SachsUpgradesBuyConviction Buy

View More Analyst Ratings for SIG
View the Latest Analyst Ratings

Posted-In: Nomura Simeon SiegelAnalyst Color Initiation Analyst Ratings

 

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