Big Lots price target lowered to $6 from $7 at Loop Capital

Loop Capital analyst Anthony Chukumba lowered the firm’s price target on Big Lots to $6 from $7 and keeps a Hold rating on the shares. The company’s Q3 results came in ahead of expectations, including higher-than-expected comparable sales growth and profit margins, though this was also the second quarter in a row in which Big Lots benefited from overly pessimistic forecasts as opposed to significant fundamental improvements in the company’s business, the analyst tells investors in a research note. Big Lots still faces significant macroeconomic headwinds, the company’s shift to carrying more opportunistically purchased merchandise is still largely unproven, the firm added.