UBS reiterates Buy rating on Signet Jewelers stock ahead of Q2 results

Published 25/08/2025, 10:48
UBS reiterates Buy rating on Signet Jewelers stock ahead of Q2 results

Investing.com - UBS has maintained its Buy rating and $95.00 price target on Signet Jewelers (NYSE:SIG) ahead of the jewelry retailer’s upcoming second-quarter earnings report. According to InvestingPro data, the stock, currently trading at $87.33, appears undervalued based on its proprietary Fair Value model.

The investment firm’s industry checks and analysis suggest Signet had a solid second quarter, leading UBS to forecast a 13-cent earnings per share beat compared to consensus estimates. This optimism is supported by InvestingPro data showing that 4 analysts have recently revised their earnings expectations upward, with analyst targets ranging from $75 to $102.

UBS believes Signet’s current fiscal year 2026 EPS guidance range of $7.70-$9.38 is wide enough to accommodate various scenarios, including potential impacts from incremental tariffs, and expects the company to reiterate this outlook. The company’s solid financial position is reflected in its GOOD Financial Health Score of 2.94 from InvestingPro, with a healthy current ratio of 1.5 and annual revenue of $6.73 billion.

The firm notes that market reaction to the earnings report will likely depend on Signet’s third-quarter outlook and quarter-to-date comparable sales trends, with positive or negative commentary potentially driving sentiment in either direction.

UBS anticipates high volatility around the earnings event, with options markets pricing in a potential 12.1% move in either direction, slightly higher than the historical average move of 11.1%.

In other recent news, Signet Jewelers Ltd reported its first-quarter 2025 earnings, with revenue reaching $1.5 billion. The company achieved an adjusted earnings per share (EPS) of $1.18. Signet Jewelers experienced a 2.5% growth in same-store sales and a significant 20% increase in adjusted operating income. Despite these positive results, the market reaction was reserved. The company’s stock saw a decrease after the earnings announcement, reflecting some investor caution. These developments come amidst the company’s ongoing efforts to strengthen its financial performance. Investors and analysts are closely monitoring these results for potential impacts on future financial strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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