Signet Jewelers price target raised to $125 from $120 at Sterne Agee Sterne Agee raised its price target for Signet Jewelers shares to $125 and advises investors to stay long the stock following the company's Q4 results. The firm says Signet's gross margin pressures are alleviating while its outlook for Q1 was beat. Signet remains Sterne’s top pick in the space.
Signet Jewelers repeats Q2 adjusted EPS view $1.11-$1.16, consensus $1.15 Sees Q2 SSS up 2%-3%. Sees FY16 CapEx $275M-$325M, effective tax rate 28%-29%, net selling square footage growth 2%-3%. Says company's biggest opportunities for market share remain in the U.s. Sees $150M-$175M in cumulative 3-year operating profit synergies by end of January 2018. Says majority of synergies will be achieved by Zale division. By end of FY18, says Zale division expected to be at 9% operating margin. Says synergies alone will help achieve medium-term operating margin milestone. Comments from slides that will be presented at the company's Institutional Investor Conference.