12:50 PM EDT, 03/21/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target to $77 from $75, 8x our FY 25 (Jan.) EPS, below SIG's five-year average forward P/E of 9.0x, justified by the continued risk of both weaker-than-anticipated recovery for new engagements and deleveraging on fixed cost. We trim our FY 25 EPS to $9.59 from $10.23 and introduce FY 26's at $10.27. SIG posted FQ4 (Jan-Q) adj-EPS of $6.73 (+22% Y/Y), $0.34 above consensus. Revenue of $2,498M (-6.3% Y/Y) was $50M below consensus. Adj-operating income was up 1.2% Y/Y to $410M, with the margin expanding to 16.4%, 60 bps below consensus. Same-store sales contracted 9.6%. SIG initiated its FY 25 guidance with revenue of $6.6B-$7.0B assuming same store sales of -4.5% to +0.5% and engagement growth of 5% to 10% (lower than the initial 10% view). While we're positive on SIG's sourcing and inventory management, we think engagement growth realization is at risk due to pressured consumer wallets. We anticipate engagement growth in FY 26 pairing favorably with SIG's renovation and savings initiatives.