Skip to main content

Market Overview

Big Lots Analyst Still Bearish After New CFO Appointment

Big Lots Analyst Still Bearish After New CFO Appointment

Bank of America maintained a bearish stance on discount retailer Big Lots, Inc. (NYSE: BIG) after appointing a new CFO and reaffirming its guidance.

The Analyst

Bank of America's Jason Haas maintains an Underperform rating on Big Lots with a $23 price target.

The Thesis

Jonathan Ramsden will replace Timothy Johnson. Ramsden's background includes CFO of clothing apparel retailer Abercrombie & Fitch Co. (NYSE: ANF) from 2008 to 2014, COO from 2014 to 2016 and was CFO of global marketing services group TBWA Worldwide.

The company maintained its second-quarter EPS at 35 cents to 45 cents on a low-single-digit comp. The fact that management reiterated its guidance is a "positive" but second-quarter results could prove to be "low quality." Specifically, Big Lots ended the first quarter with a 10% increase in inventory and promotional activity so far in the second quarter look to be elevated.

Haas said the appointment of a new CFO has little impact on Big Lots' outlook as management's emphasis on home furnishing within store remodels won't be enough to make up for losses in other categories. In fact, a change of management at this time could "add execution risk" to the outlook.

Price Action

Shares of Big Lots were trading higher by 3% at $28.61 Wednesday afternoon.

Related Links:

Tempur Sealy Reconnects With Mattress Firm, Expands Big Lots Agreement

Big Lots Hit With Big Downgrade

Photo credit: Mike Kalasnik from Fort Mill via Wikimedia Commons

Latest Ratings for BIG

Jan 2021Loop CapitalDowngradesBuyHold
Jan 2021Deutsche BankMaintainsHold
Jan 2021BarclaysDowngradesEqual-WeightUnderweight

View More Analyst Ratings for BIG
View the Latest Analyst Ratings


Related Articles (BIG)

View Comments and Join the Discussion!

Posted-In: Bank of America Jason HaasAnalyst Color Guidance Short Ideas Management Analyst Ratings Trading Ideas Best of Benzinga

Need corporate guidance data?
Click here to see licensing options.

Latest Ratings

NIUDaiwa CapitalInitiates Coverage On41.5
QMCONorthland Capital MarketsInitiates Coverage On12.0
IBKRJefferiesInitiates Coverage On89.0
MRETFTD SecuritiesDowngrades18.5
SWKSGoldman SachsDowngrades135.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at