Market Overview

UPDATE: Deutsche Bank Downgrades Big Lots to Sell on Structural Challenges

Share:
Related BIG
Mid-Afternoon Market Update: Crude Oil Up 1.8%; Deckers Outdoor Shares Jump After Q1 Beat And Raise
Mid-Day Market Update: Nutanix Climbs After Strong Q3 Results; GameStop Shares Plummet

Deutsche Bank reduced its rating on Big Lots (NYSE: BIG) from Hold to Sell and announced a $23 price target.

Deutsche Bank noted, "The more we study BIG's consumables segment, the greater our concerns mount - 2 points. First, while we originally thought BIG could shift its closeout mix lower/add coolers (to help drive frequency), we've recently learned that b/c closeouts carry a much higher merchandise margin rate (> 40%) vs. low-30's for replenishment, such a move would considerably alter BIG's merchandise margin structure. Second, given the proliferation of the $ stores and their own augmentation in consumables, BIG is losing out on trips. "

Big Lots closed at $28.91 on Monday.

Latest Ratings for BIG

DateFirmActionFromTo
Apr 2017Raymond JamesUpgradesMarket PerformStrong Buy
Mar 2017Loop CapitalReiteratesBuy
Feb 2017SusquehannaInitiates Coverage OnNeutral

View More Analyst Ratings for BIG
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Downgrades Intraday Update Analyst Ratings

 

Related Articles (BIG)

View Comments and Join the Discussion!