Big Lots price target raised by $1 at Telsey Advisory, here’s why

Telsey Advisory raised the firm’s price target on Big Lots to $7 from $6 and keeps a Market Perform rating on the shares. While Big Lots is being impacted by both a challenging macro environment and inflation that is pressuring consumer spending on discretionary items, there have been improvements with merchandising, inventory management, and optimization efforts, the analyst tells investors. In the long term, these initiatives will structurally transform Big Lots and help restore profitability.