UPDATE: JPMorgan Downgrades Big Lots (BIG) to Underweight

(updating comment)

JPMorgan analyst Matt Boss downgraded Big Lots (NYSE: BIG) from Neutral to Underweight with a price target of $14.00 (from $31.00).

The analyst comments "On the fundamental front, gross profit dollars have declined at a low-single-digit pace the past 2 years (vs. +2% trailing 3- year average) despite a robust consumer backdrop for their core low-to-middle income consumer. Traffic remains negative despite elevated promotional activity cited as a gross margin headwind in 8 consecutive quarters creating a “Catch 22” hurdle to lap with limited pricing power in mid-tier furniture/home and rising competition (WMT, W, AMZN) pointing to multi-year gross margin declines (with FY19 75bps > FY12 trough)."

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 $22.44 yesterday.

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