Benchmark Reiterates Buy and PT of $50 on Big Lots

Benchmark reiterated its Buy rating and PT of $50 on Big Lots (NYSE: BIG) ahead of the company's Q1 earnings report, which is due on Thursday, May 26, before the markets open.

In a research report published today, Banchmark states, "We maintain our $50 price target based on 16x our 2011 EPS estimate of $3.13 and 7.5x our 2011 EBITDA estimate, as our price target did contain a take out premium. We believe management was looking for a multiple similar to Family Dollar's unsolicited offer of 9.3x 2011E EBITDA, or the 10 multiple Dollar General received from KKR."

Big Lots had a disastrous trading session on Thursday, after its shares lost massive 10.52% to close the day at $33.77. Big Lots continued to fall in today's pre-market trading as well, sliding 0.53% to $33.59.