Big Lots downgraded to Sell from Hold at Loop Capital

Loop Capital downgraded Big Lots to Sell from Hold with a price target of $1, down from $6. The analyst believes Big Lots has lost “substantial consumer relevance and mindshare,” which it says is “very difficult – if not impossible – to regain.” Loop is “extremely skeptical” of the company’s merchandising shift back to bargain and treasure products given changes in the competitive landscape over the past 10 years. In addition, Big Lots’ financial situation is “becoming increasingly precarious” and recent media reports that the company has hired a turnaround consulting firm and is currently exploring financing options is “very concerning,” the analyst tells investors in a research note.