Big Lots downgraded to "underweight"

02/23/06 - KeyBanc Capital Markets

NEW YORK, February 23 (newratings.com) - Analysts at KeyBanc Capital Markets downgrade Big Lots Inc (BLI) from "hold" to "underweight," while reducing their estimates for the company.

In a research note published yesterday, the analysts mention that the company has posted its continuing 4Q06 EPS short of the estimates. A stiff competitive environment and the economic challenges being witnessed by the consumer is exerting pressure on Big Lots' ability to generate significant improvement in its operating margins, the analysts say. The EPS estimate for FY07 has been reduced from $0.55 to $0.35.