UPDATE: Canaccord Genuity Reiterates on Big Lots Based on DCF Model

In a report published Friday, Canaccord Genuity analyst Laura Champine reiterated a Hold rating on

, but lowered the price target from $37.00 to $34.00. In the report, Canaccord Genuity noted, “BIG's Q3 loss of $0.07/share in the U.S. business was $0.06 worse than we had forecast. We are no longer including the Canadian operations in our model as the company is shuttering operations (see below). SSS declined 2.5% on top of -4.6%, falling short of our flat expectation. We are reducing our Q4 EPS estimate by $0.62 to $1.50 on an apples-to-apples basis, which indicates a 28% yr./yr. decline. This excludes Canada where BIG guided for an implied Q4 operating loss of $0.10-$0.14 versus $0.00 in Q4/12. We are lowering our price target from $37 to $34 based on our DCF model.” Big Lots closed on Thursday at $33.90.