Is Big Lots Really Shifting Gears After Q2? Analyst Weighs In
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Joseph Feldman has reiterated a Market Perform rating on Big Lots, Inc. (NYSE:BIG), raising the price target to $8.50 from $6. Despite a 15.4% YoY sales decline in Q2 FY23, the company beat consensus estimates. Feldman believes Big Lots is shifting to offense after several quarters on defense due to the harsh macro environment and inflation. The company's Q3 comparable sales are expected to be down in the low-teens range, a modest improvement from Q2. For FY23, the EPS estimate was lowered to a $(10.63) loss.
August 30, 2023 | 5:28 pm
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NEUTRAL IMPACT
Big Lots' Q2 sales beat estimates despite a decline, leading to a price target increase. However, the EPS estimate for FY23 was lowered.
The news is a mixed bag for Big Lots. On one hand, beating Q2 sales estimates and a raised price target are positive signs. On the other hand, the lowered EPS estimate for FY23 indicates potential challenges ahead. This could lead to a neutral short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100