Palantir a high-risk investment with ’a one-of-a-kind growth and margin model’
Investing.com -- Jefferies initiated coverage of Signet Jewelers (NYSE:SIG) with a Buy rating and a $102 price target, citing early signs of a turnaround under new CEO JK Symancyk and what it called an undervalued stock.
The brokerage said Symancyk, who joined Signet in 2024 after leading PetSmart, has begun to streamline the business by consolidating brands, shifting away from mall-based stores, and focusing on higher-margin sales.
Jefferies highlighted recent operational improvements, including a return to positive same-store sales growth in North America in the first quarter, and a rebound in web traffic and social media engagement in May.
Signet holds a 6.5% share in the fragmented $103 billion North American jewelry and watch market, ahead of competitors like Helzberg Diamonds and Pandora (OTC:PNDRY), Jefferies estimated.
The firm projects the market will expand at a compound annual rate of 2.9% over the next five years.
Jefferies also pointed to Signet’s strong free cash flow profile, noting the company generated $438 million in fiscal 2025, or roughly $9.66 per share, with plans to reinvest and return capital to shareholders.
It expects adjusted EBITDA to grow at a 5% annual pace over the next two years.
At roughly 6 times projected fiscal 2027 EBITDA, Jefferies said the stock trades well below peers and sees room for multiple expansion as investor confidence in the turnaround builds. Its $102 price target is based on an 8.5x multiple of its 2027 EBITDA estimate.