UPDATE: Deutsche Bank Lowers PT on Big Lots as New CEO Faces Big Opportunity

In a report published Tuesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Big Lots BIG, but lowered the price target from $38.00 to $32.00. In the report, Deutsche Bank noted, “Given inconsistent traffic, weak sales productivity, and margins well below historical levels, BIG's new CEO David Campisi has a large opportunity ahead. We applaud bold steps taken in his short tenure including: (a) a multitude of changes in the merchandise/marketing organization, (b) closing of the wholesale operations, (c) exiting Canada, (d) plans to roll-out coolers, and (e) moving swiftly to markdown current product in order to implement the 'edit-to-amplify' strategy. The BIG of the future remains a murky picture, however, as planogram changes continue to be tested with significant capital requirements ahead. We remain sidelined awaiting evidence of progress.” Big Lots closed on Monday at $31.23.