NEW YORK (TheStreet) -- Signet Jewelers (SIG) - Get Report stock rating was lowered to "neutral" from "buy" at Citi on Friday morning, CNBC.com reports. The firm also cut its price target to $83 from $125.
The downgrade comes after the Bermuda-based jewelry retailer posted earnings and revenue below analysts' estimates for the 2017 fiscal second quarter yesterday.
The firm also cited weakening fundamentals.
"The sales/merch margin equation has turned negative and weakness at Zale over the past two quarters causes us to question if that business is likely to close the sales productivity and profit gap (vs. Kay) we once thought could be closed," Citi said in a note cited by CNBC.com.
Shares of Signet closed sharply lower on Thursday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, 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.
You can view the full analysis from the report here: SIG