KeyBanc Upgrades Big Lots (BIG) to Buy

March 31, 2014 7:04 AM EDT
Get Alerts BIG Hot Sheet
Price: $40.18 +1.11%

Rating Summary:
    10 Buy, 18 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 25 | Down: 19 | New: 35
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KeyBanc upgraded Big Lots (NYSE: BIG) from Hold to Buy with a price target of $45.00.

Analyst Bradley B. Thomas said, "We are upgrading Big Lots, Inc. (BIG-NYSE) to BUY from HOLD, as we believe the Company is gaining traction on a number of turnaround initiatives under new president and CEO David Campisi. Mr. Campisi is implementing an "Edit to Amplify" strategy to improve stores’ shoppability for "Jennifer," its core customer. While this strategy is overarching and likely to be the most important earnings lever for BIG in the coming years, our analysis suggests investors receive this effort as a "call option," as several other initiatives have the potential to double earnings on their own. First, BIG is exiting Canada, eliminating its drag on earnings and focusing management’s time on the core business. Additionally, BIG plans for continued share repurchases, supported by its strong FCF outlook. The addition of freezers/coolers and expansion of furniture financing are both positioned to drive sales and EPS."

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 $37.20 yesterday.


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