BIG - Big Lots stock slides as Piper moves to Sell calling out dividend risk

2023-04-21 08:16:44 ET

Piper Sandler took their rating on Big Lots ( NYSE: BIG ) to Sell as channel checks suggest continued deceleration in furniture sales.

The firm’s analysts said that slowing furniture and mattress sales, as well as free cash flow concerns, have sparked the downgrade from a prior Hold-equivalent. Additionally, the company’s dividend could be “at risk” if cash concerns build.

“We are downgrading shares of BIG to Underweight and lowering our PT to $7 based on our industry view that demand for both home furnishings and mattresses has deteriorated since March and will likely remain challenged in the months ahead,” the downgrade note explained. “With continued weakness in sales FCF could go negative and put the dividend at risk.”

Shares of Big Lots ( BIG ) slumped 6.06% in premarket trading.

Read more on the company’s latest earnings results .

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