Collins Stewart Starts Big Lots (BIG) at Buy; Recent Pullback Creates Opportunity

Collins Stewart initiates coverage on Big Lots (NYSE: BIG) with a Buy. PT $58.00.

Collins analyst says, "Big Lots is the nation’s largest broadline closeout retailer, selling merchandise in a variety of categories including consumables, home, furniture, hardlines, and seasonal. The company recently reported Q3 EPS below consensus, as gross margin compression dragged the U.S. business below expectations. Investors were clearly disappointed, and the stock sold off sharply following the release. We believe investors’ concerns are overdone and view the recent pullback as a buying opportunity. The gross margin pressure stemmed primarily from lower initial mark-up (IMU), which is largely the result of more aggressive pricing and a shift in mix.""

For an analyst ratings summary and ratings history on Big Lots click here. For more ratings news on Big Lots click here.

Shares of Big Lots closed at $36.62 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• TD Cowen Resumes EQT Corp. (EQT) at Hold
• B.Riley Resumes Magnite (MGNI) at Buy
• JMP Securities Starts The RMR Group Inc. (RMR) at Market Perform, 'Pure-Pay'