Deutsche Bank Maintains Buy, $59 PT on Signet
Deutsche Bank reiterates its Buy rating and $59 target price on Signet (NYSE: SIG) as a 6% pullback creates buying opportunity given in-line sales and profits.
Deutsche Bank comments, "Same store sales for Nov/Dec were in line with expectations at 9.2% for US and 1.8% for UK. Guidance is for $3.67-$3.72 EPS for '11/12, in line with consensus of $3.71 and about 1.5% below our forecast. The shares have fallen 6% on profit taking (up 30% in the last 3 months) and this creates a buying opportunity since: (1) EPS is up 40% in '11/12 and we project 15% p.a. for the next 3 years (2) exclusive products are up 30% to 26% of sales and should continue to drive premium growth (3) a major share buyback $300m program starts on 16 Jan."
SIG closed at $44.05 per share on Tuesday.
