Benchmark Increases Estimates And Price Targets For Big Lots

In a report published by Benchmark, it's increasing the estimates and price targets for Big Lots BIG.

Benchmark said that Big Lots reported a solid 4Q10, with EPS beating Benchmark's estimate by $0.08 on a higher than expected gross margin. “We increased our 2011 estimates on the outperformance and a greater confidence going forward. We believe there could still be upside potential to our 2011 EPS estimate driven by the possibility of the Company continuing to repurchase shares. The balance sheet remained solid, despite an aggressive share repurchase program. Given the increase in our 2011 EPS estimate, we increased our price target to $50. Given the upside to our price target, we reiterate our Buy rating.”

Big Lots closed yesterday at $41.33.