SIG.L Share News (SIG)

(ShareCast News) - UBS upgraded Signet Group's rating to 'buy' from 'neutral' after the jeweller upgraded its guidance.The Swiss bank moved its price target for Signet, which recently bought diamond store Zales, to 9,000p from 8,500p.Analyst Andrew Hughes said UBS upgraded its earnings forecasts to move in line with guidance from Signet that Zale's margins would be in the "low teens" by 2018.Hughes said the margin increase seems in part based on Zales' stronger than expected sales performance since acquisition.UBS noted that management would use about 70-80% of surplus cash flow for buybacks, with the remainder earmarked for small-scale mergers and acquisitions."Despite some recent weakness in US market data, Signet continues to gain market share. The market slowdown may be a function of spending patterns shifting to home and leisure, although jewellery (as especially bridal) has shown steady growth over the long term," Hughes said.Shares in Signet Jewellers were down by 0.19% to 8055p at 1635 BST.