UPDATE: Canaccord Genuity Lowers PT to $57 on Big Lots on Weaker Comps

Canaccord Genuity reduces its price target from $58 to $57 on Buy-rated Big Lots

as same store sales trended down in late Q1. Canaccord Genuity notes, "BIG lowered guidance for U.S. SSS sales as it now expects to report a slight decline on top of -3.6%, versus a prior outlook of 2%-4% and our estimate of +4%. Management commented that sales tailed off in late March and through April after trending in line with expectations through the first six weeks of Q1. We are reducing our Q1 EPS estimate by $0.06 to $0.75 on a 1% SSS decline. We are lowering our DCF-generated price target from $58 to $57. We are obviously disappointed with the announcement, as we thought the company was making progress in its weaker categories of consumables and electronics. At 13x our FY12 EPS estimate and 6x FY12E EV/EBITDA, BIG shares appear cheap enough to maintain a BUY rating." BIG closed at $45.71 on Monday.