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Signet selloff on promotion comment an overreaction, says Citi

Citi analyst Paul Lejuez says Signet Jewelers shares traded down 15% after earnings on management commentary that the company was slightly more promotional than planned in Q1 and risk of higher promotions is something to watch. The firm believes the market overreacted to the comment, especially because there are potential offsets if promotions end up higher than planned. Citi’s projection for a Q3 comp inflection is unchanged and it keeps a Buy rating on the shares with a $119 price target.

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