NEW YORK (TheStreet) -- Signet Jeweler's (SIG) - Get Report stock price target was reduced by $20 to $120 at RBC Capital Markets earlier today, though the firm maintained its "outperform" rating on shares.
The jewelry retailer will likely be negatively impacted by near-term concerns surrounding its credit book sale as well as potential fallout from negative publicity regarding alleged diamond swapping, the firm wrote in a note cited by Barron's.
A recent survey by the firm indicated that 27% of jewelry shoppers polled were aware of negative publicity about Kay Jewelers and the diamond-swapping allegations, with 75% of respondents noting that this could affect their future purchase decisions.
Britain's decision last week to exit the European Union will probably weigh on shares as well, the firm noted.
But Signet is one of the better-positioned retailers to weather the consequences of Brexit due to "its net share gainer position, coupled with synergies [that] should lead to mid-teens EPS growth over the next few years," RBC Capital said, according to Barron's.
The stock closed higher by 1.84% to $80.72 in Tuesday's trading session.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Signet's strengths 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 outweigh the fact that the company has had lackluster performance in the stock itself.
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 article's author.