Northcoast Research said Signet Jewelers Ltd. is leaning to a sale of its credit business, a move that could potentially lift its valuation multiples and result in increased returns for shareholders.Analyst CommentaryAnalyst Jeff Stein explained that if Signet retains the ownership of the portfolio there would be more detailed disclosure of credit metrics and a greater level of transparency.“But, we are not certain this path would result in as much value creation as a sale. In a sale we would expect the shares to be accorded a higher P/E multiple and look for SIG to use net proceeds to repurchase shares,” Stein wrote in a note.Stein, who has a Neutral rating on the shares, sees some generational shift in purchasing behavior for jewelry. That said, this does not mean that the Signet story is done by any means, as its competitive advantages remain intact.via