Signet Jewelers' (SIG) fiscal 2026 earnings before interest and taxes guidance indicates it is effectively navigating tariff headwinds, UBS analysts said in a Tuesday note.
Analysts said that the "solid" performance of Signet's Kay, Jared, and Zales banners should continue, given ongoing investments in merchandising, marketing, and customer experience.
UBS said the company's Q4 outlook assumes flat to slight merchandise margin expansion despite incremental tariff headwinds, which is key as investors feared a cut to the fiscal 2026 earnings guidance.
Analysts said that Signet's Q3 earnings report reinforced their conviction that the company's "Grow Brand Love" plan is reigniting its core comparable sales growth.
UBS raised the stock's price target to $115 from $110 and retained a buy rating.
Analysts forecast a compound annual growth rate of 12% over five years, and expect earnings per share to beat estimates over the near-term to catalyze the stock toward the $115 price target.
Price: 90.68, Change: +1.49, Percent Change: +1.67
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