Signet Stock Price Target Lifted After Zale Corp Acquisition

(IDEX Online News) – Signet Jewelers has received a quick response to its $1.4 billion acquisition of Zale Corp last week after its stock had its “buy” rating reaffirmed by research firm Nomura and a price target of $115.00 from a previous $85.00.

The upwards revision of the price target is more than 21 percent from the company’s current price of around $95.

Nomura analysts wrote that the acquisition of Zale Corp "propels the company to an even greater position of dominance within the low- to mid-tier market".

The acquisition will give Signet around 16 percent of the U.S. jewelry market.

Analysts at UBS AG upgraded shares of Signet Jewelers from a “hold” rating to a “buy” rating in a research note on Friday, while analysts at Sterne Agee upgraded shares of Signet Jewelers from a “neutral” rating to a “buy” rating and a $120.00 price target from $86.00.

Signet Jewelers is the largest specialty jewelry retailer in the US and UK. Signet's US division operates over 1,400 stores in all 50 states primarily under the name brands of Kay Jewelers and Jared The Galleria Of Jewelry. Signet's UK division operates approximately 500 stores primarily under the name brands of H.Samuel and Ernest Jones.

Zale Corp operates approximately 1,680 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale’s brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.