Signet Jewelers Reports Full Year Earnings, Citigroup Maintains Medium Risk Rating

Citigroup has published a research report on Signet Jewelers SIG after the company posted full year earnings results. In the report, Citigroup writes "Signet is a best-in-class retailer, in our view, with an unparalleled record of market share gains. As the US consumer recovers from the downturn, we see Signet as the natural industry consolidator, with the balance sheet flexibility to support a period of sustained growth, margin recovery and share buybacks. We believe Signet offers a geared play on a US consumer recovery. Year end net cash was $302m (Citi $228m). Management anticipate FY12 positive free cash flow of $150-200m (Citi $230m), and capex c$110-130m (Citi $80m). This provides the flexibility for future investment in growth and cash returns to shareholders." Citigroup maintains its Medium Risk rating on Signet Jewelers, which closed yesterday at $44.80.