Shares of closeout retailer Big Lot's Inc. (NYSE: BIG) fell today as one Wall Street brokerage initiated coverage of the company on Wednesday with a â€˜holdâ€™ rating.
Analyst Joan Storms of Wedbush Morgan said the company has already achieved its premium valuation.
Although we like the turnaround story and management, we do not see a significant catalyst to further expand the valuation, Storms told clients in a note on Wednesday. Therefore, we would wait for a more favorable valuation to become more aggressive on the stock.
Wedbush Morgan placed a 12 month price target of $30 on the company.
Big Lots is the largest closeout retailer in the U.S., operating 1,375 stores mostly located in strip malls in 47 states.
Shares of Big Lots fell $2.07, or 6.04 percent, to close at $32.19 on the New York Stock Exchange.