Sterne Agee CRT Starts Big Lots (BIG) at Neutral

Sterne Agee CRT initiates coverage on Big Lots (NYSE: BIG) with a Neutral rating and a price target of $50.00.

Analyst Tom Nikic commented, "We like the improvements to the business since CEO David Campisi joined 2 years ago, though we believe they are now adequately reflected in the shares (+80% since early 2014 vs. SPX +20%). BIG is once again comping positively (though benefits from adding freezers/coolers and furniture financing begin tapering in 2H15), and margins appear to have troughed (though improvement may be gradual due to investments and potential wage inflation). Notably, the early-2016 e-commerce launch provides a new avenue for growth, but could generate losses until 2018. All in, BIG's Strategic Planning Process appears solid, but upside to numbers may be limited and valuation evenly balances risk/reward."

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 $47.57 yesterday.

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