UPDATE: JP Morgan Reduces PT to $28 on Big Lots on Discretionary Spending Weakness
JP Morgan reiterated its Underweight rating on Big Lots (NYSE: BIG) and lowered its price target from $34 to $28.
JP Morgan noted, "While the historical rule of thumb is to buy BIG when they stub their toe (given a volatile closeout model), we believe this time is different with the business model in flux (discretionary vs. consumables core traffic driver debate) and FY13 shaping up to a “transitional year” in our view. Near-term, our in-store work points to continued top- line weakness and discretionary pressure (elevated furniture/home clearance) with P&G closeout inventory holding consumables in-tact (runs through October)."
Big Lots closed at $30.14 on Monday.
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