Big Lots up as analyst boosts rating, price target
Big Lots rises as analyst lifts rating, price target partly on efforts from new management
NEW YORK (AP) -- New leadership and a new look in some Big Lots stores earned an upgrade from J.P. Morgan, sending shares of the chain up nearly 6 percent Monday.
THE SPARK: Analyst Matthew Boss raised Big Lots to "Neutral" from "Underweight" and lifted its price target to $32 from $28.
THE ANALYSIS: Boss said the company is testing out some initiatives — like a furniture leasing program, a focus on deals and a new look in some stores.
The company has also named a new CEO and chief financial officer within the past year, and its chief marketing officer is retiring. Boss believes that it will take some time for the new executives to get their footing but that "a fresh look at the business and refocus on the core operations is a long-term positive with a solid chief marketing officer replacement pivotal to stabilizing the ship given relationships key in the closeout business."
A representative for Big Lots did not immediately respond to an email seeking comment.
SHARE ACTION: Big Lots Inc. rose $1.85 to $34.10. The stock has traded in a range of $26.69 to $39.22 over the past year. For the year to date, the shares are up 13 percent.
