Ahead of the Bell: JPMorgan downgrades Big Lots
By
Associated Press
September 16, 2008
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A JPMorgan analyst downgraded the shares of Big Lots Inc. to "Neutral" from "Overweight" and said earnings comparisons may become more difficult in 2009 and that any upside for the rest of the year may already be priced in.
Shares closed Monday at $31.56. They have traded in a range of $12.40 to $34.88 in the past 52 weeks.
JPMorgan's Charles Grom said that without a near-term catalyst, the "stock is likely stuck in neutral." He noted that the closeout retailer's next quarterly earnings was about 90 days away.
"We believe that shares of BIG will likely languish at these levels as top-line concerns remain in focus, especially as downbeat news flow likely plagues the pre-holiday period," the analyst wrote in a note to investors.
"Looking ahead to 2009, delivering the earnings growth outperformance investors have come to expect appears more challenging," he added.
Big Lots is based in Columbus, Ohio.
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