Signet Jewelers: Wells Fargo maintains Equal-Weight, raises PT to $90 from $75

Signet Jewelers: Wells Fargo maintains Equal-Weight, raises PT to $90 from $75

In a significant move for Signet Jewelers Limited (SIG), Wells Fargo & Company has raised its price target to $90 from $75, maintaining an equal-weight rating. This adjustment comes on the heels of strong second-quarter (Q2) earnings results and an upward revision of fiscal year 2026 guidance [2].

Signet Jewelers reported Q2 adjusted earnings per share (EPS) of $1.61, surpassing the analyst consensus estimate of $1.23. The company's quarterly sales of $1.53 billion also exceeded the Street's view of $1.50 billion, marking a 3% year-over-year increase [3]. The company's same-store sales rose by 2.0%, driven by a 9% increase in merchandise average unit retail (AUR), including a 4% increase in Bridal and a 12% increase in Fashion. Operating income improved to $2.8 million from a $100.9 million operating loss in the year-ago period, while the adjusted operating margin expanded to 5.6% from 4.6% [3].

The company's CEO's strategies to enhance marketing and merchandising continue to show positive results. Signet Jewelers has raised its fiscal year 2026 EPS guidance to $8.04–$9.57 from $7.70–$9.38, and its revenue guidance to $6.670–$6.820 billion from $6.570–$6.800 billion [1]. The company also declared a quarterly cash dividend of 32 cents per share for the third quarter of fiscal 2026 [3].

Wells Fargo's analyst team believes that Signet Jewelers' strong performance and the company's ability to navigate tariffs will continue to drive its stock price. The analyst firm noted, "with valuation compelling and free-cash-flow generation strong...we'd continue to aggressively buy shares" [1].

Signet Jewelers' stock has been well-received by analysts, with five of nine brokerages rating the stock as a "buy" or higher, and four "hold". The median price target stands at $92 [1]. The stock has seen a 9.1% year-to-date (YTD) increase, with a 52-week low of $45.55 and a 52-week high of $106.28 [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UP0U2:0-signet-jewelers-gains-on-annual-earnings-forecast-raise/
[2] https://www.marketbeat.com/instant-alerts/signet-jewelers-limited-nysesig-receives-average-rating-of-moderate-buy-from-analysts-2025-08-27/
[3] https://www.benzinga.com/markets/equities/25/09/47455572/whats-going-on-with-signet-jewelers-stock-today-