The firm said it lowered its rating on the closeout retailer as positive developments are now in place, with top line inflection likely pushed to the second half of 2015.
"With access to credit initiatives now in place (furniture financing [and] EBT acceptance), CEO Campisi (and team) has successfully built a better mousetrap moving from negative to positive same store sales in the first half of 2014, while maintaining gross margin stability," the firm said.
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JPMorgan reduced its price target on Big Lots to $51 from $53.
Separately, TheStreet Ratings team rates BIG LOTS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BIG LOTS INC (BIG) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share."