NEW YORK (TheStreet) -- Before Friday's market open, Signet Jewelers (SIG) - Get Report stock rating was lowered to "neutral" from "buy" at Goldman Sachs after the jewelry retailer reported disappointing revenue and weak same store sales growth for the fiscal 2017 first quarter. The firm also removed the stock from its "Conviction List."

"Our enthusiasm for SIG's long-term growth prospects is dampened by a surprising deceleration in business momentum that materialized in April and persisted into May," Goldman Sachs analysts said in a note this morning. "We prefer to wait on the sidelines until clarity on comps improves."

Signet Jewelers' long-term growth could still improve with consolidation of its market share and the strategic review of the company's credit portfolio, but short-term comparable sales growth is still uncertain.

"Guidance suggests 2H comps accelerate to 2%-3% from the +1%-2% run rate expected in 2Q," analysts added. "It is unclear to us what incremental drivers SIG has to achieve this acceleration beyond what they are already doing."

Shares of Bermuda-based Signet Jewelers are up 1.18% to $98.14 in mid-morning trading on Friday.

Separately, Signet Jewelers has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels.

You can view the full analysis from the report here: SIG

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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