Big Lots price target lowered to $5.50 from $8.50 at Telsey Advisory

Telsey Advisory analyst Joseph Feldman lowered the firm’s price target on Big Lots to $5.50 from $8.50 and keeps a Market Perform rating on the shares. The firm maintains “soft” Q3 and annual estimates, reflecting weak spending on “big ticket, discretionary products” and the disruption from the closing of a large vendor, United Furniture Industries, which continues to weigh on earnings, the analyst tells investors. Big Lots is in a “tough spot,” but the challenging macro backdrop is masking some of the company’s progress on its transformation strategy, the firm argues. Overall, Telsey will remain on the sidelines.