2/8/2010-According to Barron's, Wedbush Securities raised its price target for Big Lots (NYSE:BIG) to $36 from $35 and maintained its Outperform rating, as the firm believes strong deals and traffic trends should continue into 2010 as consumers continue to search for value.

In addition, the firm raised its Q4 EPS forecast to $1.27 from $1.22 and also raised its 2010 EPS forecast to $2.60 from $2.50, which are now both in line with consensus estimates.

Wedbush Securities commented, "Our thesis remains that the company's stronger, more discretionary assortments year over year should result in improved business trends through the holidays and into 2010 as Big Lots should gain incremental customer footsteps in a recovering economy; we maintain an Outperform rating. The company achieved all its 2009 operating and merchandising initiatives, which clearly benefited the all important Holiday quarter. Holiday sales were strong, driven by solid performance of home, furniture, hardlines, and seasonal. We expect these trends to continue beyond the fourth quarter supported by fresh merchandise and marketing, including the company's new Rewards loyalty-card program. Big Lots should actually achieve positive square-footage growth in fiscal 2009, which should accelerate into 2010 and beyond, helping to spur top-line growth."

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