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Shares of Signet Jewelers (SIG) - Get Signet Jewelers Limited Report are down over 16% this week, largely on the jeweler's disappointing first quarter earnings results and a number of downgrades of its stock.

However, RBC analysts noted today that the risk/reward of an investment into Signet looks compelling.

"We acknowledge that the guidance still implies a significant sales improvement through the year and still some uncertainty remains around sale of the subprime book," the analysts wrote.

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"We believe risk/reward is favorable at these washed out levels...Our $63 price target is based on 9x our FY18 EPS estimate of $7.00, below its historical average (of 13-15x) given increased uncertainty around sales recovery and eventual complete outsourcing of its subprime credit book," they added.

Shares of the jeweler were lower over 2% during afternoon trading on Friday.

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