RBC Cuts Signet Target As Brexit Adds To Worries

Analysts are still wading through the implications of Brexit , and RBC Capital Markets’ Brian Tunick and his team lowered their price target on Signet Jewelers ( SIG ) Tuesday on the UK vote, although they’re still bullish on the stock. Tunick lowered his price target by $20, to $120, while keeping an Outperform rating on the stock. He writes that Signet is still one of the better positioned retailers, thanks to its “its net share gainer position, coupled with synergies [that] should lead to mid-teens EPS growth over the next few years.” Yet Tunick expects that in the near term at least, there will be increased uncertainty around its credit book sale, along with potential impact on Kay sales of negative publicity, which along with Brexit will limit the stock’s upside. Read More »