Loop Capital Downgrades Big Lots (BIG) to Sell, PT to Street Low $1

Loop Capital analyst Anthony Chukumba downgraded Big Lots (NYSE: BIG) from Hold to Sell with a price target of $1.00 (from $6.00).

The analyst comments "We are downgrading Big Lots to a Sell from a Hold rating while lowering our price target to $1 from $6, implying 81% downside from current levels. We believe Big Lots has lost substantial consumer relevance and mindshare, which in our long experience is very difficult —if not impossible—to regain. We are also extremely skeptical of Big Lots' merchandising shift back to bargain/treasure products given changes in the competitive landscape over the past 10+ years. Finally, we think Big Lots' financial situation is becoming increasingly precarious and find recent media reports the company has hired a turnaround consulting firm and is currently exploring financing options to be very concerning. Our new $1 price target effectively represents the value of a "call option" on Big Lots pulling off what in our opinion would be a near miraculous recovery."

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 $5.36 yesterday.

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