Analysts predict increased gains for rival as Big Lots faces challenges

  • JPMorgan analysts believe Big Lots’ struggles could benefit Ollie’s Bargain Outlet
  • Ollie’s Bargain Outlet shares upgraded from hold to buy with a price target of $105
  • Possible Big Lots bankruptcy may lead to more customers shifting to Ollie’s Bargain Outlet stores
  • UBS predicts 4,700 empty retail locations could be taken by better-performing retailers in the next five years

JPMorgan analysts have suggested that the difficulties faced by discount retailer Big Lots could lead to an increase in customers moving towards its closeout-retail competitor, Ollie’s Bargain Outlet. JPMorgan upgraded shares of Ollie’s Bargain Outlet Holdings from ‘hold’ to ‘buy’, with a price target of $105. This comes after Big Lots reported a larger-than-expected first-quarter loss and concerns about its ability to continue as a going concern. UBS predicts that 4,700 retail locations could close in the next five years due to inflation and other factors.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the financial situation of Big Lots Inc., JPMorgan’s upgrade of Ollie’s Bargain Outlet Holdings, and the potential impact on both companies. It also mentions the broader context of retail closures and competition in the discount market. The information is based on company filings and analyst reports, making it a factual article.
Noise Level: 5
Noise Justification: The article provides some relevant information about the financial struggles of Big Lots and potential opportunities for Ollie’s Bargain Outlet, but it is mostly focused on stock upgrades and speculation. It lacks in-depth analysis or exploration of long-term trends or consequences of decisions. The content is not very actionable for readers and does not offer significant new knowledge.
Public Companies: Big Lots Inc. (BIG), Ollie’s Bargain Outlet Holdings (OLLI), Burlington Stores Inc. (BURL), Dollar Tree Inc. (DLTR)
Key People: Bruce Thorn (Chief Executive of Big Lots Inc.)

Track all markets on TradingView

Financial Relevance: Yes
Financial Markets Impacted: The article discusses the financial struggles of Big Lots Inc., a discount retailer, and its potential impact on rival Ollie’s Bargain Outlet Holdings. This could lead to more customers shifting to Ollie’s stores if Big Lots declares bankruptcy. It also mentions the possible closure of 45,000 stores over the next five years due to the rise of discount shopping sites like Temu and Shein.
Financial Rating Justification: The article discusses financial performance of retail companies, potential bankruptcies, and their impact on competitors and the overall retail industry, making it relevant to financial topics and financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article. The text discusses financial struggles of Big Lots and potential opportunities for its competitors, but it does not describe an extreme event.

Reported publicly: www.marketwatch.com