UPDATE: JP Morgan Reduces PT to $28 on Big Lots on Discretionary Spending Weakness

JP Morgan reiterated its Underweight rating on Big Lots

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.